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|Japan to Aim at Levelling Off of BF WR Prices for Asia for Next Qtr Shipt|
Export negotiations on blast furnace (BF) steel wire rods (WR) for Asia have been commenced for shipments of the next quarter (January-March). The Japanese mills seem to aim at levelling off of prices from those for this quarter shipments, and most of them are likely to have offered their prices to remain flat.|
Customers in the Asian region see a decrease in prices of raw materials and have replied a price reduction by $20-30. Dark signs have been seen in the automotive industry in China, Thailand and so on. In Indonesia, subsidies for gasoline were abolished, and with its rebound, the automotive industry is thought to be affected. With focus on the automotive industry, demand for wire rods for the next quarter is not necessarily to be strong.
Japanese wire rod customers are exposed to competition with Chinese products in each country. Naturally, they are to request a price decrease to the Japanese mills. While, the Japanese mills are proceeding with negotiations for the next quarter focusing on how customers like processing companies and so on are able to compete with Chinese wire rods. They set out a stance to cooperate with customers' technical development as well as quality.
Through this overall cooperation, they have a policy to maintain their prices avoiding customers' request for a price decrease by earning customers' valuation not only simply in prices of wire rods but also in the technical cooperation.
Prices of raw materials for a blast furnace are on track to fall next quarter as well. On the grounds of this, there are cases for some customers to ask for a price decrease. In this quarter, there were some to accept a price decrease for certain customers but as there are customers to which the mills could not have passed fully on a price hike of raw materials in the past, the mills are judging to be able to persuade customers.
|last modified : Mon 15 Dec, 2014 [10:14]|