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|Japan to Offer Levelling Off of Prices of GI Base Metals for Jan Shipt|
Negotiations on base metals of hot-dip galvanized steel sheets (GI base metals) are commenced soon for January shipment. The Japanese mills seem mostly to offer their prices at levelling off from those for December shipment. In December shipment, they slightly lowered their prices ($10 or so) but there is no large change in an environment of negotiations for January shipment, they are to have fixed their price policy to make offers at levelling off of prices.|
Preceding the Japanese mills, Korea's POSCO and Chinese mills are likely to compete each other in Central and South America and so on. POSCO's offer prices of GI base metals are said to be $630-640 CFR. On FOB basis, they are seen to be the level of $570-580 which are cheaper than those of this quarter by $20-30. As the domestic demand in Korea is not so good, the company is aggressive to export, and its stance is not just limited to GI base metals. In Central and South America, Brazilian blast furnace mills are reported to be proceeding with negotiations at the similar price level to that of POSCO.
Chinese mills are more aggressive than POSCO. Their export prices of hot-dip galvanized steel sheets ate the level to dip below $600 CFR in Central and South America and so on. Rerolling mills including mills in Central and South America are said to need prices of GI base metals at prices of cold-rolled steel sheets plus $70-80 to produce hot-dip galvanized sheets. If POSCO's prices are used as the base, prices of hot-dip galvanized sheets have to be around $720 CFR. Compared to this level, Chinese mills' prices are cheaper by more than $100. The domestic price of hot-dip galvanized sheets in China is said to be around $620 in dollar volume. Such price is the higher level than that of export but the domestic demand is insufficient, they are seen to mount an offensive against export.
In the Asian region as well as Central and South America, rerolling mills are placed in a predicament. So, it is difficult to raise prices of material base metals. Meantime, when it enters January, its is expected that selling to raise cash will disappear and cheap prices will cease to some extent due to the new year start.
The Japanese mills' advantage is mainly to sell thinner gauges of products. As their main range is the thickness of 0.13 to 0.15 mm, they are able to sell them with thicker thickness products as a set and to maintain quantity to some extent. Chinese mills do not produce thinner thickness products while POSCO are not aggressive to those products so much. Under the circumstances, if the Japanese mills sacrifice thicker thickness products, they expect to secure a certain quantity.
|last modified : Tue 09 Dec, 2014 [12:39]|