Tex reported that transaction prices of standard CR sheets are bordering on a tumble in Asia, which could bring a fall of prices below USD 500 per tonne FOB if the situation remains unchanged.
As per report, steelmakers such as POSCO are in course of negotiating CR sheet exports to China at USD 500 per tonne FOB. The price under negotiation differs by USD 50 from the going price of HR coils that is viewed as USD 450 per tonne FOB in Asia. Until the autumn of last year, transaction prices of standard CR sheets topped USD 1,000 per tonne FOB in Asia. But they face a considerable fall at present.
In Japan, there was a recent import arrival at Osaka port of standard CR sheets from Australia. The price of the import arrival was USD 500 per tonne CNF, of which the FOB value was estimated at a level of USD 450 per tonne.
Meanwhile, there are dim prospects of export prices advancing markedly in Asia due to overproduction of HR coils. In some areas, a low price of even USD 390 per tonne FOB exists. It is uncertain whether standard CR sheet prices will sink to a level of USD 390 per tonne FOB. But they are forecast to decline to a level of USD 450 per tonne FOB before long.