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Negotiations on Ship Plates for Korea Prolonged Also This Time
= For shipments of this quarter =
The Japanese mills' negotiations on steel plates for shipbuilding with Korean leading shipbuilders including Hyundai Heavy Industries have continued to be deadlocked for shipments of this quarter (July-September), and if this pace goes on, shipments are predicted to become semi-annual ones of July-December this time as well. As the steel and shipbuilding industries both in Japan and Korea enter soon a summer vacation, negotiations may be resumed from the middle of August. If so, negotiations will become a continual struggle.

The Japanese mills are offering an increase in prices by $50 from the previous contracts for shipments of this quarter. While, Korean shipbuilders are requiring a decrease in prices although they do not generally mention concrete figures. It is in a state where time goes with remaining as far apart as ever.

Korean shipbuilders' order quantities are lately increasing. Their orders are on a track to recovery. However, as the construction of vessels becomes from the next year onward, it does not have an impact on negotiations soon. Japan's exports of steel plates to Korea in January-May were 141 thousand tons, down 55.8% from the same period last year. Its exports in April declined to 16 thousand tons. It does not now mean that its export quantity will not increase even if prices are lowered.

Negotiations depend on how Korea's POSCO sets domestic prices of plates. Unless POSCO's prices are settled, shipbuilders do not show a full-fledged stance in negotiations with the Japanese mills. According to latest information, the company is in a stance to request an increase in prices by 50,000 won ($45) of small shipbuilders. For leading shipbuilders, such view is said to be spreading domestically that the company will raise its prices by 20,000-30,000 won ($18-27).

As China's export quantity of plates to Korea is decreasing, POSCO's domestic supply is likely to be increasing. For this reason, POSCO's stance forcedly to export is said to be reduced. Attention is paid to whether the company will take a step of an increase in prices promptly after the settlement of its domestic prices.
last modified : Thu 03 Aug, 2017 [09:54]
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