Japanese mills have reached an agreement with South Korean cold rolling mills about the delivered price of cold rolled base material around USD 800 per tonne FOB on average in the second quarter of 2011. Similarly, the price of medium heavy plate is announced nearly USD 900 per tonne FOB.
It is reported that the Japanese side is forced to decrease its prices because of lasting sluggishness in South Korean domestic steel market. Initially, Japanese mills only expected to decline its prices to about USD 900 to USD 950 per tonne FOB from USD 1,000 per tonne.
On the other hand, it is going to start other price negotiations on CR base material and ship plate between Japan and South Korea for Q3.
Japan is expected to boost prices to replenish the rising cost. However, market insiders believe the prices in Q3 will be even as the performance in Q2 without strong support from Local market in South Korea.
(Sourced from YIEH.com)