It is reported that Japanese integrated steelmakers will set the starting price at USD 550 per tonne FOB in the HR coil exports they negotiate for October to December 2009 quarter shipments to Asian destinations while struggling to win a higher price level of USD 600 per tonne FOB at the final stage.
The Japanese steelmakers are set to begin studying what terms to offer next week toward their HR coil export negotiations with Asian customers on Q4 shipments. The negotiations are expected to start in the fourth week of August.
The Japanese steelmakers have already won a price level of USD 550 per tonne FOB in their negotiated HR coil exports for July-September shipments. Cases in point are HR coil exports to Vietnam and the Middle East for September shipments.
In the Middle East, there are offers of HR coils from Russia and Ukraine at USD 580 per tonne C&F for September to October shipments. It is uncertain whether the offers have brought firm deals. So far, no cases exist of a Russian or Ukrainian offer at USD 600 per tonne C&F.
At present, the Japanese steelmakers have strong inquiries from Taiwan's steel re rollers for HR coil supplies. In this connection, the Japanese steelmakers see a possibility that China Steel Corporation will execute another domestic price increase of HR coils for September to October shipments.