SteelOrbis Shanghai
Price negotiations between Japanese Iron and Steel United Enterprises and the South Korean re-rollers regarding HR coil delivery for Q1 2007 are to enter a key phase at the end of this week. The price being sought by the Japanese mills is at about $510-520/mt FOB, the same as the current price. However, the Koreans are insisting on a price down by $30-40/mt. Both parties had come together for discussions on the issue last week.
If the HR coil price decreases for Q1 2007, Japanese steelmakers are expected to consider reducing HR coil exports to South
Korea. The Japanese steel producers have made promises to increase steel supplies to domestic carmakers for the first quarter of the coming year.
Sources indicate that
China's steelmakers and South
Korea buyers are also discussing HR coil prices for delivery in Q1 2007.
China is seeking an increase of $10/mt. However, no change has been made yet.