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Negotiation on Hot Rolled Steel Coils Will Commence in December 2012
Add Time：2012-10-23 23:45:00 Clicks：
TEX reported that negotiations on hot rolled steel coils for the remote areas like Middle East and Central and South America are expected to be commenced soon for December 2012 shipment. At present, there is no room of further price down but as there is no big factor of price up, it is widely thought to become leveling off of the price level of USD 550 to 560 CFR for November 2012 shipment.
WISCO of China increased its domestic prices of HR coils by CNY 150 for November 2012 shipment. Baoshan Iron & Steel left its prices unchanged eventually despite that there seemed to be in house calls for price increase following WISCO. Possibly as both companies did not keep pace, the much awaited message of price up has not been reflected on the export market yet.
There is information that rather, the movement of the Japanese mills is attracting gaze of overseas customers including those in the remote areas. There is an observation that some Japanese mills may offer cheap prices and become disturbing factors in the HR coil market.
Due to the Senkaku Islands issue, a boycott of the Japanese cars is strengthened in China, and production curtailment of the Japanese automobile manufacturers has become clear. With this, effects on steel products like steel bars, HR coils, cold rolled and coated steel sheets and son on have become obvious in addition to decrease in parts' supply. Japan has to be cautious about an antidumping case for Korea, and its supply for China surely decreases due to production cutback of cars and home electric appliances.
Accordingly, overseas customers seem to observe that the Japanese mills will cover such decrease for Korea and China by increasing supply for Middle East, Southwest Asia, Central and South America and so on. Cheap prices from Far East including Japan are said to be expected greatly.
Korea's POSCO which had curbed export of HR coils seems to have made offers for December shipment. The company tends to shift excess being not sold out domestically to export, and its offer price is reported to be USD 550 CFR. The Chinese mills seem not to have proceeded with negotiations for the remote areas, and their offers are said not to be found. In the Islamic area, as the pilgrimage month comes from late this week, negotiations are predicted to become calm. After this holiday, negotiations are expected to start.
The Japanese mills also seem not to have commenced negotiations yet. While, information that there are offer prices at USD 550 CFR or USD 480 FOB is spreading. If it is true, those are cheaper than the present market prices of USD 550 to USD 560 CFR, and a stance to secure quantity is seen to be shown.
In September and October 2012 shipment, HR coil prices dropped by USD 50 to USD 60. In November 2012 shipment, higher prices dropped by USD 10 to USD 15 while there is no change in lower prices. If cheaper prices do not come out, it can be said to be in the environment being able to maintain the present price level.
As there are no offers of the Chinese mills, customers are still keeping a wait and see stance. The Russian mills' offers are also not found. Under such situation, it is questionable for a Japanese mill to make a cheap offer to become a disturbing factor but it is conscious of such information. If there are no cheap offers of a Japanese mill, there is a possibility for the present price level to be maintained till the Lunar New Year.
Source - TEX Report Limited
WISCO of China increased its domestic prices of HR coils by CNY 150 for November 2012 shipment. Baoshan Iron & Steel left its prices unchanged eventually despite that there seemed to be in house calls for price increase following WISCO. Possibly as both companies did not keep pace, the much awaited message of price up has not been reflected on the export market yet.
There is information that rather, the movement of the Japanese mills is attracting gaze of overseas customers including those in the remote areas. There is an observation that some Japanese mills may offer cheap prices and become disturbing factors in the HR coil market.
Due to the Senkaku Islands issue, a boycott of the Japanese cars is strengthened in China, and production curtailment of the Japanese automobile manufacturers has become clear. With this, effects on steel products like steel bars, HR coils, cold rolled and coated steel sheets and son on have become obvious in addition to decrease in parts' supply. Japan has to be cautious about an antidumping case for Korea, and its supply for China surely decreases due to production cutback of cars and home electric appliances.
Accordingly, overseas customers seem to observe that the Japanese mills will cover such decrease for Korea and China by increasing supply for Middle East, Southwest Asia, Central and South America and so on. Cheap prices from Far East including Japan are said to be expected greatly.
Korea's POSCO which had curbed export of HR coils seems to have made offers for December shipment. The company tends to shift excess being not sold out domestically to export, and its offer price is reported to be USD 550 CFR. The Chinese mills seem not to have proceeded with negotiations for the remote areas, and their offers are said not to be found. In the Islamic area, as the pilgrimage month comes from late this week, negotiations are predicted to become calm. After this holiday, negotiations are expected to start.
The Japanese mills also seem not to have commenced negotiations yet. While, information that there are offer prices at USD 550 CFR or USD 480 FOB is spreading. If it is true, those are cheaper than the present market prices of USD 550 to USD 560 CFR, and a stance to secure quantity is seen to be shown.
In September and October 2012 shipment, HR coil prices dropped by USD 50 to USD 60. In November 2012 shipment, higher prices dropped by USD 10 to USD 15 while there is no change in lower prices. If cheaper prices do not come out, it can be said to be in the environment being able to maintain the present price level.
As there are no offers of the Chinese mills, customers are still keeping a wait and see stance. The Russian mills' offers are also not found. Under such situation, it is questionable for a Japanese mill to make a cheap offer to become a disturbing factor but it is conscious of such information. If there are no cheap offers of a Japanese mill, there is a possibility for the present price level to be maintained till the Lunar New Year.
Source - TEX Report Limited