Japan to Settle Hot Coil Export Price at $520-530 for Korea

Japanese integrated steel makers are expected to conclude the hot rolled coil export price negotiation with South Korean rerollers including Hyundai Hysco at FOB US$ 520-530 per tonne for October-December shipment in the middle of the week. They make some concession each other when South Korean rerollers are running out the inventory though the rerollers sought price down while Japanese makers tried to increase the price. Japanese makers offered FOB US$ 560 per tonne for the quarter while South Korean rerollers submitted US$ 480-490 of counter offer. With the wide gap, Nippon Steel rejected to ship for October shipment and JFE Steel, which already has contract for October shipment, also insisted to keep the price. However, South Korean rerollers started to show sign for compromise when they reduce the inventory during the long run negotiation. Japanese makers also make concessions when South Korean rerollers are losing money. Asian sheet steel market is divided into commodity and higher grade products. The supply is still tight for hot-dip galvanizing steel for flat screen television, automotive steel and chrome free steel while the price decreases with loose supply mainly in Chinese market for hot coil and cold coil for construction applications. South Korean rerollers are loosing money and many of them are expected to post loss for July-September.