Mon Jan 23, 2012
TOKYO Jan 23 (Reuters) - Tokyo Steel Manufacturing Co , Japan's biggest construction steelmaker, said on Monday it would keep prices unchanged in February, seeking to stem an inflow of cheaper imports, but added that the market shows signs of improvement on growing reconstruction demand.
Its pricing strategy is closely watched by Asian rivals like Hyundai Steel, POSCO and Baosteel, which have ramped up capacity, aiming to take advantage of their weaker currencies to boost exports to Japan.
"We hope to raise prices but the current yen rate and a potential rise in imports make it difficult to do so," Kiyoshi Imamura, marketing director at Tokyo Steel, told a news conference.
The company is hoping that China will ease its lending policy after the Lunar New Year break, stimulating steel demand.
In Japan, demand for construction steel has picked up since late last month on rebuilding of Japan's northeast that was devastated by massive earthquake and tsunami last March, Imamura said.
Showing posts with label Asian steel market. Show all posts
Showing posts with label Asian steel market. Show all posts
Monday, January 23, 2012
Wednesday, November 30, 2011
Vale iron ore head sees Asia driving steel market
Wednesday, 30 Nov 2011
Reuters reported that iron ore will continue to sell in the range of USD 120 to USD 180 per tonne in the near term, while China, a driver of Asian steel consumption, constrains its economy in the face of inflationary threats.
Mr Jose Carlos Martins, Vale's executive director for iron ore and strategy told Reuters that but the market for the key ingredient for steel manufacture is expected to grow as Asia builds up its infrastructure and Western steelmakers stagnate.
He added that "For the bigger part of this year, the price was around USD 180. I don't believe in the next year the price will go above 180 or below 120. The scenario is moderate to good."
Earlier, Vale slashed its capital spending budget for 2012 by 11% and pushed back its largest iron ore project by two years in the face of falling commodities prices and environmental delays.
During an interview at the New York Stock Exchange where the company's executives met Wall Street investors, Mr Martins said global steel production was a tale of two halves of the world since the 2008 recession.
He added that "In Europe and America, in the western world, the market has kind of stagnated. Steel production in the western world is 15% to 20% below pre crisis levels. So the western world has never recovered. Those countries don't have enough space to promote growth, so we do not see the western world moving, probably it will be stable."
But in contrast, he said China was the main factor behind steel consumption growth in Asia. He added that "China is facing an inflationary environment, so they put a lot of constraints in the economy to prevent inflation going up. The whole scenario is not that good as far as steel production is concerned or iron ore."
But on the other hand, when the price reaches that low level of USD 120, many high cost Chinese mines cannot keep operating, so steelmakers will buy iron ore from abroad.
Mr Martins said that "I believe USD 180 is the limit on the upside, but I believe the price will move more in the downside area than the upside. But it's very difficult to say, as China is very unpredictable. That's the reason I am moderately optimistic. Before the crisis, steel production in Europe and the western world was down by 20%, but in Asia it was up by 30%. It's very simple, it's demographics."
He said that "In the west, you can improve the infrastructure, but it's already there. In the west, steel production is very much linked with the economy. If the economy is doing well, because of consumer goods, then you will have more steel consumption. But in Asia, even if consumer goods are not doing well, you still have to build infrastructure."
(sourced from Reuters)
Reuters reported that iron ore will continue to sell in the range of USD 120 to USD 180 per tonne in the near term, while China, a driver of Asian steel consumption, constrains its economy in the face of inflationary threats.
Mr Jose Carlos Martins, Vale's executive director for iron ore and strategy told Reuters that but the market for the key ingredient for steel manufacture is expected to grow as Asia builds up its infrastructure and Western steelmakers stagnate.
He added that "For the bigger part of this year, the price was around USD 180. I don't believe in the next year the price will go above 180 or below 120. The scenario is moderate to good."
Earlier, Vale slashed its capital spending budget for 2012 by 11% and pushed back its largest iron ore project by two years in the face of falling commodities prices and environmental delays.
During an interview at the New York Stock Exchange where the company's executives met Wall Street investors, Mr Martins said global steel production was a tale of two halves of the world since the 2008 recession.
He added that "In Europe and America, in the western world, the market has kind of stagnated. Steel production in the western world is 15% to 20% below pre crisis levels. So the western world has never recovered. Those countries don't have enough space to promote growth, so we do not see the western world moving, probably it will be stable."
But in contrast, he said China was the main factor behind steel consumption growth in Asia. He added that "China is facing an inflationary environment, so they put a lot of constraints in the economy to prevent inflation going up. The whole scenario is not that good as far as steel production is concerned or iron ore."
But on the other hand, when the price reaches that low level of USD 120, many high cost Chinese mines cannot keep operating, so steelmakers will buy iron ore from abroad.
Mr Martins said that "I believe USD 180 is the limit on the upside, but I believe the price will move more in the downside area than the upside. But it's very difficult to say, as China is very unpredictable. That's the reason I am moderately optimistic. Before the crisis, steel production in Europe and the western world was down by 20%, but in Asia it was up by 30%. It's very simple, it's demographics."
He said that "In the west, you can improve the infrastructure, but it's already there. In the west, steel production is very much linked with the economy. If the economy is doing well, because of consumer goods, then you will have more steel consumption. But in Asia, even if consumer goods are not doing well, you still have to build infrastructure."
(sourced from Reuters)
Thursday, March 17, 2011
Asia Steel-Spot prices steady, eyeing Japan quake
Thu Mar 17, 2011 7:29am GMT
* Steelmakers and traders eyeing Japan quake
* Steel demand likely to take longer time to recover
By Ruby Lian and David Stanway
SHANGHAI, March 17 (Reuters) - Spot steel prices in China remained steady this week, with traders still assessing the impact of the Japanese earthquake on the steel market, as well as a move by top steel mills to keep prices for April unchanged.
Rebar, mostly used in the construction sector, rebounded modestly to 4,580-4,590 yuan ($697-698) per tonne on Thursday, down 10 yuan from last Thursday after slipping nearly 2 percent at the beginning of the week, industry consultancy Mysteel said.
The catastrophic earthquake and tsunami in Japan have further weighed on the global steel market, adding to concern about weak demand brought about by tighter credit and lower iron ore prices.
"Most market players are still assessing the aftermath of Japan's earthquake, while steel mills are watching the crisis closely and are hesitant to make offers, although prices have bounced back slightly," said Bill Chen, a senior trader with Hong Kong-based Smart Timing Steel Ltd.
Key Japanese steelmakers have halted operations at some of their facilities since Monday because of power outages brought about by the quake.
Luo Bingsheng, former vice-chairman of the China Iron & Steel Association and now an advisor, said at an industry conference on Thursday that Japan's post-quake reconstruction would eventually lift global steel prices and benefit Chinese steel exports.
His speech was made available on the organiser's website (Umetal.com).
The most active rebar contract on the Shanghai Futures Exchange recovered this week to 4,817 yuan per tonne, up 2.9 percent from last Thursday.
DEMAND RECOVERY STILL SLOW
Two of China's biggest steelmakers, Baoshan Iron & Steel Co Ltd and Wuhan Iron & Steel Co Ltd said this week that they would keep their main product prices stable for April, reflecting their concern about tepid demand and high stockpiles.
Demand is expected to pick up in the second quarter as end users normally return to the market to restock, but government moves to further tighten liquidity are likely to curb the recovery.
"We believe steel prices will stay at a low level for a month or two -- a rebound is unlikely because of strong supply and lukewarm demand," said Henry Liu, a commodities analyst with Mirae Asset in Hong Kong.
CISA's Luo also said the inventories of 78 medium-sized and large steel mills surged 20 percent over the first two months of the year, and some steel mills would likely suffer losses.
Inventory building by end users was unlikely to continue, and even if steel prices rebounded they were not expected to return to their February high, Liu said.
In its monthly market report published on Thursday, CISA said stockpiles remained high going into March, and that prices would be put under further pressure as a result of still excessive output levels and increases in raw material supplies. $1=6.571 yuan) (Editing by Chris Lewis, Reuters)
Rebar, mostly used in the construction sector, rebounded modestly to 4,580-4,590 yuan ($697-698) per tonne on Thursday, down 10 yuan from last Thursday after slipping nearly 2 percent at the beginning of the week, industry consultancy Mysteel said.
The catastrophic earthquake and tsunami in Japan have further weighed on the global steel market, adding to concern about weak demand brought about by tighter credit and lower iron ore prices.
"Most market players are still assessing the aftermath of Japan's earthquake, while steel mills are watching the crisis closely and are hesitant to make offers, although prices have bounced back slightly," said Bill Chen, a senior trader with Hong Kong-based Smart Timing Steel Ltd.
Key Japanese steelmakers have halted operations at some of their facilities since Monday because of power outages brought about by the quake.
Luo Bingsheng, former vice-chairman of the China Iron & Steel Association and now an advisor, said at an industry conference on Thursday that Japan's post-quake reconstruction would eventually lift global steel prices and benefit Chinese steel exports.
His speech was made available on the organiser's website (Umetal.com).
The most active rebar contract on the Shanghai Futures Exchange recovered this week to 4,817 yuan per tonne, up 2.9 percent from last Thursday.
DEMAND RECOVERY STILL SLOW
Two of China's biggest steelmakers, Baoshan Iron & Steel Co Ltd and Wuhan Iron & Steel Co Ltd said this week that they would keep their main product prices stable for April, reflecting their concern about tepid demand and high stockpiles.
Demand is expected to pick up in the second quarter as end users normally return to the market to restock, but government moves to further tighten liquidity are likely to curb the recovery.
"We believe steel prices will stay at a low level for a month or two -- a rebound is unlikely because of strong supply and lukewarm demand," said Henry Liu, a commodities analyst with Mirae Asset in Hong Kong.
CISA's Luo also said the inventories of 78 medium-sized and large steel mills surged 20 percent over the first two months of the year, and some steel mills would likely suffer losses.
Inventory building by end users was unlikely to continue, and even if steel prices rebounded they were not expected to return to their February high, Liu said.
In its monthly market report published on Thursday, CISA said stockpiles remained high going into March, and that prices would be put under further pressure as a result of still excessive output levels and increases in raw material supplies. $1=6.571 yuan) (Editing by Chris Lewis, Reuters)
Monday, March 7, 2011
Japanese steel mills put markup on export offers
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)
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