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Negotiations on NO Electrical Sheets for China
= Levelling off of prices is delicate =
The Japanese mills are expected to commence soon negotiations on non-oriented (NO) electrical steel sheets for China for January shipment. They seem mostly to offer their prices at levelling off but it seems to be subtle whether they will be able to maintain levelling off of prices of NO electrical sheets for other customers than Japanese ones without being dragged down by a decrease in prices of general steel products in China.

Korea's POSCO is aggressive to export to China. As the won swung over to a depreciation at one time, the company seems to have offered cheap prices. The company is said to have lowered its prices by $20-30 to the level of $650 CFR.

There is a possibility that customers other than Japanese customers in China strengthen a stance to seek a decrease in price against the Japanese mills with POSCO's price decreases as the driving force. And, Taiwan's CSC (China Steel) reduced its domestic prices by NT$78 (a little less than $3) for shipments of January/February. It is foreseen that Taiwanese customers other than Japanese ones in the southern region of China put pressure against the Japanese mills by using CSC's price cut as leverage.

While, Baoshan Iron & Steel and Wuhan Iron & Steel being the leading steel mills in China left their domestic prices of NO electrical sheets unchanged for January shipment. As long as the major mills in that country left their prices unchanged, such opportunity can be said to arise as the Japanese mills push through levelling off of prices. Attention is paid to how those things go.
last modified : Wed 17 Dec, 2014 [10:17]
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