|
TEX reported that a major integrated steel company of Japan is considering setting the target price level at USD 850 per tonne CNF in its H beam and sheet pile exports to Asian destinations, mainly to China, for June and July shipments, on which the company's export negotiations are expected to start shortly. The company has already negotiated part of its sheet pile exports to China at around USD 840 per tonne CNF for June shipments. As a result, it is likely that the company will seek a higher price level of USD 900 per tonne CNF in its sheet exports for July shipments.
In Asia, transaction prices of various steel products(such as steel sheet pile ,strut channel steel ) are shooting up after it has become clear that the prices of raw materials will advance considerably from April onward. Until recently, prices of steel products such as heavy plates stood at a low level. At present, though, even prices of heavy plates for shipbuilding border on USD 800 per tonne FOB in shipments out of Japan to South Korea. It was once considered difficult for a price increase to take effect in those Japano Korean heavy plate deals.
Under the existing circumstances, Japanese exports of sheet piles and H beams should fetch appropriate prices of at least USD 850 per tonne CNF, a price level that is commensurate with the going prices of other steel products(such as c channel steel ,u channel steel ), believe the Japanese parties concerned. As a result, no Japanese exports of sheet piles and H beams would be made for June shipments unless the price is agreed at USD 850 per tonne CNF or beyond.
Until now, a price settlement of USD 800 per tonne CNF has served as the norm of a Japanese integrated steelmaker's sheet pile exports to Asian destinations. In China, construction is under way for a spate of athletic facilities in southern coastal provinces in relation to the Asian Games to open in Guangzhou in November 2010.
Accordingly, local demand for sheet piles is surging, in which firm supplies of around 5,000 tonnes are already under contract for June shipments. Also, negotiated prices of sheet piles in wide sizes are said to have hit a slightly less than USD 850 per tonne CNF.
Meanwhile, an adequate price increase is slow to take hold when it comes to H beam exports by a Japanese integrated steelmaker to South Korea. Having an impact are local H beam stocks at a high level in the repercussions of H beam imports from China. Import arrivals from China totaled 80,000 tonnes in March 2010 and they are expected to total around 40,000 tonnes in April 2010. As far as South Korea's Hyundai Steel Co is concerned, the company has increased its domestic sales price of H beams by KRW 50,000 per tonne to KRW 910,000 per tonne. At the same time, the company is said to have abolished its volume discount of KRW 50,000 to KRW 100,000 per tonne. Still, local steel manufacturer haven't necessarily accepted the whole of Hyundai Steel's H beam price increase. As a result, continued transactions of H beams are reported at KRW 860,000 per tonne.
In this connection, the going prices of are approaching USD 800 per tonne CNF after they have topped USD 780 per tonne CNF both in Japanese and South Korean H beam exports to Asian destinations, market observers point out. source:news njwanze
Related Articles -
strut, channel, steel,
|
