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Japanese Mills Raise HR Coil Prices for Asia by $50 for Aug Shipment
The Japanese blast furnace mills' export negotiations on hot-rolled (HR) steel coils for Asia are expected to go into full swing from this week for August shipment. There are some mills to have already made offers at increased prices mostly by $50. Meantime, avoiding a rapid increase in prices, they are likely to raise prices gradually by $50 or so for shipments of August through September.

China's domestic market prices of HR coils rose by $30 in dollar equivalent in May and did further by $40 in June. Its total price rise is $70, and its prices are seen to recover soon to the level before a sharp fall in prices by $100 at one time.

Its domestic inventory of flat products is decreasing. In addition, as Chinese mills have shifted to long products of brisk sales, iron source allocated to flat products decreases, and production of HR coils are naturally decreasing. Therefore, it is in an environment for customers to take a step to purchase easily. A Japanese mills source is seeing that althoug their markups tend to fast somewhat, their markups are backed by demand.

One of factors for the Japanese mills to raise their prices is that they are considering to be necessary to maintain the appropriate price difference with Chinese mills. In addition, as Korean and Japanese mills are scheduled to conduct the periodic maintenance of blast furnaces in September, supply is expected to be tightened. Furthermore, against a backdrop, the Japanese mills like to maintain a gradual increase in prices from August through September.

In Korea, as New President has just assumed office, public investments are in a state to have ceased while production of automobiles is sluggish. For these reasons, supply of HR coils is excessive, and an increase in prices is in a state for prices to be difficult to be raised. POSCO seems to find a new way in export and is mounting an export offensive. There is a possibility that the company concludes contracts even cutting its prices in some cases. Amid a rise in prices of HR coils in the Asian region, the company might collapse prices. In September, as POSCO is scheduled to carry out the periodic maintenance of No.2 and No.3 blast furnaces at its Gwangyang Steelworks, the companny is seen to become inactive for export. During the time, the Japanese mills are in a stance to adjust their export quntity to Korea and cooperate in POSCO's domestic sales by tacit consent.
last modified : Fri 07 Jul, 2017 [09:35]
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