Major Drop for Japan Plate Export Price to Korea Shipbuilders

Japanese integrated steel makers apparently agreed with some of major shipbuilders in South Korea to decrease the plate export price to FOB US$ 700 per tonne for April-September. The integrated steels reflected the international plate price decline due to demand drop though new price is higher than East Asia market price.

The demand of plate for shipbuilding is relatively firm while the demand is slum for construction machinery. But shipbuilders in East Asia accept very slow orders due to the shrink of shipping market under the global recession. Some existing orders, mainly for mid- and small-sized shipbuilders are cancelled in China and South Korea. Japanese shipbuilding demand is also uncertainty.

POSCO’s domestic plate price is around 920,000 won or US$ 655 per tonne for shipbuilders in South Korea while plate market price is around US$ 600 per tonne in East Asia. Chinese makers seem to be concluding the export price negotiation with Korean shipbuilder around FOB US$ 610-630 per tonne due to oversupply.