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|Negotiations on HR Coils for Asia Start As Early As Next Week|
|= For February shipment =|
According to a source, some Japanese mill is expected to commence negotiations on hot-rolled (HR) steel coils for Asia as early as next week for February shipment. Its offer prices are unlikely to have firmly been decided yet but the company is certain to raise its prices, and as a feeling, it will raise its prices by $20-30 from current prices.|
Preceding the Japanese mills, Chinese mills seem to be proceeding with negotiations for February shipment. There is information that they have offered an increase in prices by $10 or so from those for January shipment to $570-580 CFR. Indian mills seem to have also raised their offer prices. They raised their prices by $10 to $550-560 CFR for January shipment. Blast furnaces mills in that country have set out an increase in domestic prices by $10 in dollar equivalent, and such an observation is spreading that they will raise export prices further due partly to a price hike of coking coal.
Russian mills' current prices are said to be similar to those of Indian mills at $550-560 CFR. Seasonally, Russian mills have a last opportunity for February shipment and will withdraw from the export market sooner or later. They will not cut their export prices.
For January shipment, mills of each country are likely to have concluded contracts at levelling off of prices. As it fell on the off-demand season, customers were in a stance not to accept a price increase. However, it enters the demand season from February shipment. China's Baoshan Iron & Steel raised its domestic prices by 120 CNY ($18) for January shipment for the first time in 3 months. The company seems to have judged prices to rise towards the demand season.
There is one of the factors of concern. It is that inventories may increase as customers begin replenishment of inventories in Vietnam and so on. It is said that there is such movement also in China. If such inventories will be on sale to raise cash, it could cool down the market prices. Another is that Korean mills' current prices are at a low level. In that country, as imports from China decreased, the blast furnace mills seem to have shifted to the domestic supply. However, although their export quantity is small, there are cases that their low prices similar to those of India are put on the export market. The cause is unknown for the time being but as their prices are cheaper than those of Chinese products, customers tend to proceed with negotiations advantageously taking the case of Korean prices as an example, which might disturb negotiations. It is said that there are Taiwanese prices as with prices of Korea.
|last modified : Wed 20 Dec, 2017 [09:55]|