Japan Integrated Steels Aim Hot Coil Export Price at US$ 950/t for South Korea

Japanese integrated steel makers and South Korean steel re-rollers are concluding hot coil price negotiations for April-June shipment. The steel makers aim to penetrate FOB US$ 950 per tonne by June.

Asian hot coil market price temporarily decreased until mid April when Chinese steel makers increased steel exports. The price is rapidly upturning at present since steel makers are raising the selling prices to reflect record high material costs. In South Korea, POSCO and Hyundai Steel announced price hike of main steel products by 160,000 won per tonne. Chinese steel makers such as Anshan Steel increased the export price, too.

World steel consumption is expected to increase by 5.9% mainly in emerging countries in 2011compared with 2010, according to World Steel Association.

South Korean re-rollers seem to resist strongly against Japanese integrated steels’ price hike. Meanwhile, Japanese steel makers suppose to avoid trade troubles between South Korea such as anti-dumping measures against Japanese stainless steel plate. POSCO currently raised its hot coil selling price to 1.06 million won per tonne, almost as high as US$ 970. Strong won trend against US dollar may also advantage South Korean re-rollers in the price negotiations.