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Negotiations on Ship Plates for Korea Start Soon
= For shipments of the first half of next year =
The Japanese blast furnace mills have commenced preliminary negotiations on steel plates for shipbuilding with Korean leading sipbuilders for shipments of the first half (January-June) of next year. In December, they are seen to submit offers. Although their offer prices have not been decided yet, they are seen to raise their prices by $50-60 as a rise in prices of general use plates in the Asian region as well as in Korea is higher than that in the latter half of this year for Korean shipbuilders.

Most of Korean shipbuilders have turned into the black this year. Under the circumstances, POSCO of that country succeeded in an increase in prices for domestic shipbuilders by 100,000 won ($90) for the first half year and 50,000 won ($45) for the latter half year, totaling 150,000 won ($135). Similarly, Japan's plate prices rose by $150 in total this year.

Meantime, in Korea, prices of plates for general use are reported to have risen as much as 120,000 won ($109) in the latter half of this year. However, Hyundai Steel tried to raise its prices of ship plates by 90,000 won ($82) but its markups are said to have stayed at 50,000 won. Therefore, the company is foreseen to implement a rise in such ungained prices for the first half of next year.

Asian prices of general use plates have risen by $120 in dollar equivalent in Shanghai, China and $100 in Singapore since April.

Considering such rise in prices of general use plates, Korea's markups seem to be small in the latter half of the year. Accordingly, the Japanese mills are felt to offer an increase in prices by $50-60 in order to improve profitability watching a movement of Korean mills. Meantime, Korea shipbuilders' received order prices of vessels to build in 2018 are so cheap. Therefore, shipbuilders are likely strongly to show their reluctance to accept Japan's price increases.

Meantime, Chinese mills are unlikely to have proceeded yet with negotiations on plates for Korean shipbuilders for shipments of January-March next year.
last modified : Thu 30 Nov, 2017 [10:57]
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