Prices of hot rolled steel coils for January shipment rose
further in the Asian region. Japanese mills are expected to raise their price
in negotiations on HR coils for February shipment also taking an advantage of
such situation.
The mills are heard to have not fixed their prices but JFE Steel seems to
target an increase of $ 50 from the current prices according to an impression made
by a market participant.
HR coil prices in the Asian region were mostly traded at $10 increase in
negotiations for shipment of the first half of January. While, in negotiations
for shipment of the second half of January, those prices were raised further by
$ 15-20.
Demand for HR coil has remained unchanged significantly in the Asian region.
While, the big change is that the number of suppliers for export decreased. The
Russian mills which had embarked on an export drive before cannot be found.
Normally in winter time, the Russian mills suspend export due to the seasonal
factor. They are quiet this time too as usual.
And, the Chinese mills are not prominent. As the Chinese
domestic prices of HR coils are rising, the mills might see for their domestic
supply to be profitable rather than export. According to the China Iron &
Steel Association, the domestic price of HR coils in the previous week was
around $ 636 including tax. Whereas the same in middle of October came to $ 609.
Currently, the export prices of HR coils in Asia are hovering at around $ 570-580
FOB. The export market prices are higher than domestic prices excluding tax but
as the Chinese mills are questionable to secure this level for export, they are
thought to have judged for domestic supply to be relatively beneficial.
Meantime, the Japanese mills negotiations on HR coils for
Korea seem to go into full swing for January shipment from now on. It is
reported that POSCO Steel has a policy to raise its domestic prices in the range of $
28-47. The Japanese mills seem to proceed with negotiations watching such
movement.
Sourced
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