It is reported that there is a possibility that Japan's integrated steelmakers will execute price increases of USD 50 to USD 100 per tonne in their deals of various steel exports to the rest of Asia for shipments in the July to September quarter. The Japanese steelmakers are expected to start their export negotiations in mid May on July to September shipments to Asian destinations.
It is uncertain so far what prices will predominate in the world's raw materials supplies in the July to September quarter. But spot market prices of raw materials such as iron ore and coking coal indicate a continued upswing. As a result, the Japanese steelmakers see the need to get a pass along in what they negotiate on price in Asian deals of their steel exports for July to September shipments, which could lead to price increases of USD 50 to USD 100 per tonne. In this connection, there are forecasts that the new export prices of HR coils will hit a level of USD 850 per tonne FOB.
The Japanese steelmakers assumed necessary price increases of USD 120 to USD 150 per tonne in their steel exports to Asian destinations in the April to June quarter after they saw a surge in raw materials prices in the January to March quarter. In actual deals of HR coil exports for April to June shipments, the Japanese steelmakers have achieved a phased price increase by USD 150 per tonne to a level of USD 750 per tonne FOB for June shipments up from that of USD 600 per tonne FOB for March shipments.