Japan Steels Start Hot Coil Price Talk with Korean Rerollers

Japanese integrated steel makers started negotiation with rerolling makers in South Korea in the week for hot rolled coil export for January-March shipment. Japanese steels try to keep the price from October-December shipment while South Korean rerollers seek lower price though they seem not to submit the offer yet. The price was around FOB US$ 520 per tonne for October-December. The supply of high valued products keeps tight for manufacturers including automakers and appliances makers in Asia when the market is separated into commodity grade and high valued products. Japanese integrated steel makers see the demand keeps firm for automobile, appliances and energy sector in Asia and the inventory adjustment already finished. The steels expect they can keep the price when Baoshan Iron and Steel of China and China Steel Corporation of Taiwan left the hot coil price unchanged for January shipment. South Korean rerollers urge lower hot coil price when there will post loss for the year. Some sources in South Korea said the rerollers decided not to accept higher price than FOB US$ 460 per tonne. However, the rerollers’ hot coil inventory is low level when Chinese major steel makers reduce the supply due to maintenance. With the market condition, some expect Japanese steels and South Korean rerollers could fill the gap to conclude the negotiation in the year. Japanese integrated steel makers try to increase the export price for hot-dip and electro galvanizing steel products for January-March under the tight supply while they will keep the export price for hot and cold flat steel.