Nippon Steel’s Price Negotiation is Proceeding with Difficulty for South Korean Users

The export price negotiation of steel plate for South Korean shipbuilders by Nippon Steel can’t clear deadlocked. It is ensured that the export becomes zero in October shipment. The price negotiation of hot-rolled steel sheet for South Korean re-rolling makers is becoming tangled. It is expected that the firm’s hot-rolled steel sheet export for South Korean re-rolling makers becomes less than half in October from every month.Nippon Steel presents high price to South Korean users with strong demand. The firm thinks to make some concession slightly to users to suit the market price, but to carry through the price hike of steel plate for shipbuilding if the firm passes over the export in November shipment, and will maintain the price oriented export policy. Nippon Steel increased the selling price of steel plate for South Korean shipbuilders at FOB US$ 680 by US$ 100 in October 2006-March 2006 from April-September 2006. South Korean shipbuilders required lowering prices to Nippon Steel because of price deference fro Japanese shipbuilders. They can’t find meeting point, lose their timing in October shipment. It is continuing in deadlocked. Nippon Steel thinks that the firm doesn’t negotiate until South Korean shipbuilders show the stance to accept the price hike. If the negotiation doesn’t decide by the first half of October, there is possible that the export in November shipment is skipped.Nippon Steel presented the selling price of hot-rolled steel sheet for South Korean re-rollers at FOB US$ 560 in October-December 2006 at the same level from July-September 2006. South Korean makers required the lowering prices because they are continuing to money-losing operation by downturn of cold-rolled steel sheet and surface treated steel sheet market. Nippon Steel express understanding that the present price at US$ 560 is high against the international market price, will wait that South Korean users compromise to at over US$ 500 at least. They becomes to explore landing site to indicator for South Korean steel maker, POSCO’s selling price at US$ 530. General steel products market is getting into adjustment phase. However, high grade steel products market is continuing good condition for manufacturing industry. The market is more polarization. Nippon Steel is advancing the export price negotiation for manufacturing industry after October shipment. Users accepted the price hike by Nippon Steel to increase by US$ 30-50 for such as electric zinc coated steel sheet, tin plate, steel sheet for automobile or magnetic steel sheet.