Nippon Steel & Sumitomo Metal revises and raises its prices of steel plates for Asia except the Korean shipbuilders additionally by USD 20 for April/May shipment. As a result, its offer prices are raised to USD 670 CFR from this week.
The environment of demand on plates is lately turning around further. Demand for construction and industrial machinery which had been sluggish in the past has been recovering in the USA, China and Japan. As for bridge related demand as well, its inquiries of plates are substantially increasing. Projects related to energy also begin to move.
The Japan's heavy industries had been overwhelmed in the fields related to offshore structures, bridges and so on due to the appreciated yen by Korea of the weakening won and so on. However, the Japanese heavy industrial companies have begun to undertake overseas projects aggressively because of revision of the superstrong yen. If USD 1 is equal to the level of 90 to 100 yen, the Japanese heavy industries except shipbuilding will be certain to recover, and responding to this, supply quantity of plates is also to increase for the heavy industries.
NSSMC has offered its prices at the level of USD 650 CFR at first for April/May shipment toward recovery of the level of USD 600 FOB. At present, most of customers have accepted its offer prices. Demand on plates seems to become strong further, and in China as well, Baoshan Iron & Steel (Baosteel) raised its domestic prices of plates by 150 CNY (USD 24) for April shipment. Other blast furnace mills in that country are predicted to notice their prices for April shipment soon, and they are seen to follow Baosteel. If this happens, signs of further rise of plate prices are to be shown in that country as well.
Under the circumstances, NSSMC is to proceed with negotiations to increase its offer prices by USD 20 to USD 670 CFR for April/May shipment from this week. As it is to exceed 60,000 yen per ton in yen conversion, it will also stimulate price increase negotiations on plates which are being undertaken domestically.
Meantime, price increase of plates for Korea except the shipbuilders is penetrated as well as in Asia. POSCO seems not to have settled yet for shipment of this quarter for the shipbuilders. With this, there is no way for the Japanese mills to conclude contracts. POSCO had stated to cut its prices slightly for this quarter shipment but as the Asian market prices of plates are rising, the company withdrew its price down. The Japanese mills become possible to reject request for price down from Korea. If USD 670 CFR is generalized, prices of plates for general use for Korea are the level of USD 650 FOB. It could be for plate prices for general use to exceed those for shipbuilding.
Source: The TEX Report
