TEX reported that Japan''s integrated steelmakers have achieved a target price level of USD 700 per tonne FOB in negotiated deals of their CR sheet exports to the rest of Asia, mainly to China, for January and February shipments. At present, their export deals of CR sheets are under negotiation for March shipments.
Chances are the Japanese steelmakers will get prices of close to USD 750 per tonne FOB for March shipments, depending on what prices China''s major integrated steelmakers will apply in domestic sales of CR sheets for February shipments. Besides, the Japanese steelmakers are expected to seek a higher price level of US$800 per tonne FOB in the CR sheet exports they negotiate for April-June shipments to Asian destinations.
For January shipments, China''s major integrated steelmakers have separate domestic price increases in effect of CR sheets. The price increases are CNY 550 per tonne for products from Baosteel Co, CNY 400 per tonne for ones from Wuhan Iron & Steel Group Corporation and CNY 600 to CNY 650 per tonne for ones from Anshan Iron & Steel Group Corporation.
In the case of South Korea''s POSCO, it is uncertain whether the company has started or put off negotiations on its new CR sheet exports to Asian destinations. It is understood that POSCO has little leeway for CR sheet exports as domestic supply demand conditions for CR sheets continue tight besides the company''s in house CR sheet requirements for derivative products. There is even speculation about a possibility that POSCO''s overseas subsidiaries find themselves in insufficient CR sheet supplies from the parent company. Also, a similar situation is reported for Taiwan''s China Steel Corp as to its CR sheet supplies to China''s southern coastal provinces.
As matters now stand, supply demand conditions for CR sheets are fairly tight across Asia. On their part, Japan''s integrated steelmakers are laying the foundation for an increased price level of USD 600 per tonne FOB in the HR coil exports they negotiate anew now that they have achieved a target price level of USD 700 per tonne FOB for CR sheets.
Still, the Japanese steelmakers admit dwindling leeway to allocate CR sheets for export sales. As a result, they are expected to select the customers in negotiating CR sheet exports for March shipments. As to pricing, they are set to watch Baosteel''s domestic CR sheet price when it comes to Chinese deals for CR sheet exports.
In this connection, there are forecasts that the Japanese steelmakers will get prices of close to USD 750 per tonne FOB in their CR sheet exports for March shipment, depending on Baosteel''s domestic CR sheet price for February shipments. For April to June shipments, it is likely that the Japanese steelmakers will target a higher price level of USD 800 per tonne FOB in their CR sheet exports with close attention to the prospects of new import prices of blast furnace feed.