Yieh Loong slab negotiations with Japanese mills

Yieh Loong slab negotiations with Japanese mills

As the Japanese steel mills insist on slab prices of $265/mt, Taiwanese mill Yieh Loong decreased the purchasing quantity from the originally considered 250'000 tons to 150-180'000 tons for its third quarter purchases from Japan, in order to force the Japanese mills to accept $245/mt in average for the latest deal. According to sources, the third quarter slab purchases are at the range of $245-255/mt on CFR FO basis, slightly lower than the second quarter prices. It appears that, having reduced the quantity to be supplied from the Japanese mills, Yieh Loong is looking to supply the balance tonnage of its third quarter requirement from other sources. Yieh Loong also intends to increase the quantity of its slab orders for the fourth quarter, in order to meet the strong demand from the construction sector.