Chinese users ask Japan to drop SB plate price

Chinese users ask Japan to drop SB plate price

Chinese shipbuilders have asked Japanese steelmakers to reduce their fourth-quarter shipbuilding heavy plate export price by $30-40/ton. Japan steelmakers' fourth-quarter export price for shipbuilding heavy plate has been quoted at $705-720/ton for China. In contrast, their delivery price for South Korea has been quoted at $680/ton for October 2005-March 2006 delivery. The price decline of domestic shipbuilding plate in China – Wuhan Steel, for instance, lowered its delivery price by RMB 150/ton ($18) – has led Chinese users to seek similar reductions from Japanese producers. However, their cries have fallen on deaf ears so far. Some news reports suggest that if the two parties cannot reach a timely agreement, then Japan steelmakers would postpone their delivery for October 2005 rather than accept a price level of less than $700/ton (FOB). Meanwhile, Japan shipbuilding steelmakers such as Sumitomo keep on increasing their domestic prices.