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Negotiations on GO Electrical Sheets End at Markups of over $100
= For shipments of the latter half of this year =
Negotiations on grain-oriented (GO) electrical steel sheets mainly for India and Southeast Asia being with no manufacturers by the Japanese mills have ended and realized an increase in prices by more than $100 for shipments of the latter half (July-December) of this year. As a result that inventory clearance had ended since last year, contracted quantity with customers largely increased for shipments of the latter half of the year, and the supply of the Japanese mills is in a state to be tightened.

The winning bid in the tender on GO electrical sheets invited this spring by an Indian heavy electric machinery manufacturer was raised by $300 from the previous contracts, which forecasts negotiations for the latter half of the year. Amid a situation where it would be strongly possible for prices to rise in negotiations for the latter half of the year on this occasion, the Japanese mills' negotiations were made.

In China where the Japanese mills have been shut out due to antidumping (AD) measures, Baoshan Iron & Steel continuously raised its domestic prices 6 times from January to August this year by 2,300 CNY ($334) in total including 300 CNY for August shipment. It shows evidence of strong demand. In the USA where AD measures or Article 232 of the Trade Expansion Act are concerned to be implemented, AK Steel raised its surcharge by $200. In the European region, a system of a floor price is introduced, and such floor price is higher than the international level in prices, and therefore, naturally, export prices to the region are substantially raised.

Under the circumstances, demand for GO electrical sheets is again active worldwide. From now on, negotiations for small lots will start. The balance of supply-demand is seen to be further tightened, and an upward trend in prices will be strengthened
last modified : Thu 20 Jul, 2017 [09:45]
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