It is reported that Japan's integrated steelmakers have won an increased price level of USD 520 per tonne FOB in their negotiated HR coil exports to the rest of Asia for September 2009 shipments. Cases in point are shipments to China and Southeast Asia.
At the beginning of the July to September 2009 quarter, the Japanese steelmakers faced limited deals at a price level of USD 500 per tonne C&F in their HR coil exports to Asian destinations. But they saw prices trend upward between late June and early July. As a result, negotiated prices have hit a level of USD 500 per tonne FOB at last for August to September 2009 shipments to Taiwan and Vietnam and for September shipments to South Korea. Until now, even supply contracts of HR coils have been concluded at a higher price level of USD 520 per tonne FOB as building material.
There are signs that various customers in Asian destinations admit no option but to live with a price level of USD 520 per tonne FOB for HR coil imports from Japan. Having a strong impact are major price increases of domestic HR coil sales by China's major integrated steelmakers for August shipments as well, according to market sources. With the domestic price hikes, the new HR coil prices for August shipments translate into levels of USD 540 per tonne before tax for products from Wuhan Iron & Steel Group Corporation and USD 599 per tonne before tax for ones from Baosteel Co Limited.