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Japanese Mills Start Negotiations on HR Coils for Asia for Dec Shipment
The Japanese blast furnace mills are likely to have commenced negotiations on hot-rolled (HR) steel coils for Asia for December shipment. Their negotiations have been commenced amid the situation where as Japan's domestic demand for HR coils is so strong, their export quantity is limited more than ever. Under limited quantity, their negotiations on spot basis are few, and their most negotiations are for their overseas joint ventures.

The mills are seeing that contracts will be concluded at levelling off of prices or slightly increased prices from those for November shipment without a fall in prices under the tight supply situation. Around $20 were raised from previous prices for November shipment. The price level will become between $550 and $600 CFR for December shipment.

Chinese mills are likely to have adjusted their offer prices in negotiations for December shipment. However, information of the conclusion of contracts have almost not been heard. Such cases seem to be few that they take a step of the conclusion of contracts even cutting prices due to strong domestic demand.

In Asia, lately Indian mills' offers begin to appear on the market. Their prices are $570-580 CFR, which are cheaper by $10-20 than those of Chinese mills. Poor domestic demand seems to be one of factors that Indian mills are aggressive in export. A Japanese mill source is observing that as it enters the demand season in India, such aggressiveness will be transient.

The Japanese mills' negotiations will come to the crucial stage in the latter half of next week. Attention is paid to how Taiwanese and Korean mills will move till then.

According to the source, some Chinese mills are reported to have commenced negotiations on HR coils for Asia for shipment of January next year. Their offer prices are reported to remain unchanged from those for December shipment.
last modified : Fri 10 Nov, 2017 [09:47]
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