Prices of CRGO sheets for Europe settled at levelling off for H1 shipment - TEX

Negotiations on grain-oriented (GO) electrical steel sheets for heavy electric machinery manufacturers in the European region were concluded at levelling off of prices for shipment of the 1st half (January to June) of 2014 from the end of the year through the new year.

The Japanese mills had offered an increase in prices by USD 100 in order to cease the downward trend in prices and proceeded with negotiations. Although an increase in prices was not realized, they are to have succeeded in ceasing a fall in prices at any rate which they had aimed at.

In the worldwide spot market, prices of GO electrical sheets have still been dropping. In case of negotiations for shipment of the 1st half of last year as well, the Japanese mills offered an increase in prices but as TyssenKrupp set out a decrease in prices in the region, the environment became impossible for them to increase their prices. In negotiations of this time as well, heavy machinery manufacturers had asked for further decrease in prices as the market prices have not ceased to fall.

However, not only the Japanese mills but also others have already reached boiling point to cut their prices. Any offers to reduce prices are said not to have been submitted to customers. For this reason, customers seem to have agreed on levelling off of prices first in negotiations with the Japanese mills.

In limited regions and countries like Middle East and India, offers at cheap prices are said to have put on the market. Nevertheless, at this stage, it is said that there are no offers to curt prices from China and Korea. If this goes on, it is seen for the bottom in prices to be concreted.

Source - The TEX Report