Nippon Steel to Offer South Korean Rerollrs Price Hike

Nippon Steel will offer South Korean rerollers the export price of hot-rolled steel sheet for FOB US$ 560 per tonne for October-December shipment next week, which is the level as same as July-September shipment. The firm aims to maintain the price level when the demand is strong for high-grade steel products though the market price of common steel products is weakening due to Chinese market price decline. The firm examines to raise the export price of high-grade steel products in order to put the higher zinc costs and to improve the profitability.Nippon Steel aims to advance the export price hike for high-grade steels including cold-rolled and zinc-coated steel sheet used for automobile or electric appliance by each negotiation with users. The firm holds iron resources at the bare level before the blast furnace relining and the steels shipment is increasing for domestic distributors thanks to the advance of inventory adjustment in the market. Consequently Nippon Steel cannot increase the export volume so much. The firm also aims to avoid lower prices for overseas rerollers even though the export price would be impacted by the decline of common steels market in Asia.Nippon Steel raised the export price of hot-rolled steel sheet for South Korea by US$ 100 per tonne in July-September from April-June. However, the rerollers are suffered from continuous loss-making operation when their selling prices of cold-rolled steel sheet stay the level. The temporarily short supply is easing in Asian market thanks to the refreshment of the hot-rolling mill at POSCO. South Korean rerollers are likely to demand the price cutting against Nippon Steel when Chinese market price of common steel products is decreasing and Chinese biggest steel maker, Baoshan Iron & Steel Group is reducing the selling price slightly.