Monday, 07 March 2011
TEX reported that, with a price increase of USD 300 per tonne on offer, Japan's integrated steelmakers are contemplating starting negotiations this week on their export deals of
electrolytic galvanized sheets with non Japanese customers (local companies) in Asian destinations for shipments in the April to June 2011 quarter.
It is uncertain whether the Japanese steelmakers can win the price increase on offer at a stroke because many of their export deals are settled a monthly basis. Therefore, they are considering pulling up prices by USD 200 to USD 250 per tonne for April shipments while struggling to achieve the final target price of USD 1,200 per tonne FOB for June shipments.
The current environment favors the Japanese steelmakers. EG sheet demand is on the upswing when it comes to their EG sheet exports for April shipments like their negotiated deals for March shipments. In particular, there is favorable EG sheet demand from the field of industrial robots as in the case of China. There are prospects of stable long-term EG sheet demand in that field as various companies increase capital investments in their works.
Besides, copying machine exports out of Asia to Europe are recovering, while shipments of items like air conditioners are in good shape. So far, uncertain factors in demand fields for EG sheets are limited to plant shutdowns in Thailand and Vietnam because of local labor strikes in wage negotiations.
In Asian destinations, though, various non-Japanese customers still hold in stock a large amount of bought in EG sheets each. They are thought to have promoted consumption of EG sheets in stock with February and March 2011 shipments of their products. But few of them look poised to build up EG sheet stocks in hand with new imports in the April to June 2011 quarter.
Under the existing circumstances, the Japanese steelmakers admit that it is uncertain whether they can win the price increase of USD 300 per tonne on offer at one stroke in the EG sheet exports they negotiate for April shipments. Accordingly, they are considering struggling to get a monthly price increase of USD 200 to USD 250 per tonne to USD 1,100 to USD 1,150 per tonne FOB for April shipments.
In Taiwan, meanwhile, China Steel Corporation has announced its domestic sales prices of various steel products for April and May 2011 shipments, in which a price increase of TWD 3,500 per tonne applies to EG sheets. CSC is believed to have opted for the EG sheet markup to meet high costs of raw materials and correct a cave in price level of EG sheets, with a recovery of EG sheet demand at home.
For their part, the Japanese steelmakers are reacting favorably to the Taiwanese integrated steelmaker's domestic price increase of EG sheets this time. There were forecasts earlier that CSC would limit its domestic markup of EG sheets to the equivalent of USD 100 per tonne or less. (source TEX Report)
electrolytic galvanized sheets with non Japanese customers (local companies) in Asian destinations for shipments in the April to June 2011 quarter.
It is uncertain whether the Japanese steelmakers can win the price increase on offer at a stroke because many of their export deals are settled a monthly basis. Therefore, they are considering pulling up prices by USD 200 to USD 250 per tonne for April shipments while struggling to achieve the final target price of USD 1,200 per tonne FOB for June shipments.
The current environment favors the Japanese steelmakers. EG sheet demand is on the upswing when it comes to their EG sheet exports for April shipments like their negotiated deals for March shipments. In particular, there is favorable EG sheet demand from the field of industrial robots as in the case of China. There are prospects of stable long-term EG sheet demand in that field as various companies increase capital investments in their works.
Besides, copying machine exports out of Asia to Europe are recovering, while shipments of items like air conditioners are in good shape. So far, uncertain factors in demand fields for EG sheets are limited to plant shutdowns in Thailand and Vietnam because of local labor strikes in wage negotiations.
In Asian destinations, though, various non-Japanese customers still hold in stock a large amount of bought in EG sheets each. They are thought to have promoted consumption of EG sheets in stock with February and March 2011 shipments of their products. But few of them look poised to build up EG sheet stocks in hand with new imports in the April to June 2011 quarter.
Under the existing circumstances, the Japanese steelmakers admit that it is uncertain whether they can win the price increase of USD 300 per tonne on offer at one stroke in the EG sheet exports they negotiate for April shipments. Accordingly, they are considering struggling to get a monthly price increase of USD 200 to USD 250 per tonne to USD 1,100 to USD 1,150 per tonne FOB for April shipments.
In Taiwan, meanwhile, China Steel Corporation has announced its domestic sales prices of various steel products for April and May 2011 shipments, in which a price increase of TWD 3,500 per tonne applies to EG sheets. CSC is believed to have opted for the EG sheet markup to meet high costs of raw materials and correct a cave in price level of EG sheets, with a recovery of EG sheet demand at home.
For their part, the Japanese steelmakers are reacting favorably to the Taiwanese integrated steelmaker's domestic price increase of EG sheets this time. There were forecasts earlier that CSC would limit its domestic markup of EG sheets to the equivalent of USD 100 per tonne or less. (source TEX Report)
Posts
No comments:
Post a Comment