Nippon Steel Hikes Black Plate, Tinplate Export Price for October-December

Japanese export price of tinplate and black plate rebounds after long slump since late 2008. Nippon Steel started the export talk with the buyers for October-December shipment offering US$ 100-150 per tonne hike for black plate and US$ 150-200 hike for tinplate from July-September shipment. The firm already got order at CIF US$ 820-830 for black plate from some users, which more than US$ 100 higher than July-September. Some buyers show willingness to accept more than US$ 100 of hike for tinplate.

Some black plate export price was as low as US$ 600 per tonne at spot based transaction in the first half year. The demand recovered in Asia, South America and Europe by June. The demand is firm especially in Southeast Asia for food can and the users show higher appetite for Nippon Steel’s products in July-September and more in October-December.

POSCO offers the higher export price under higher won rate against US dollar when the firm reduces the outer sales to supply sheet steel to new downstream facilities in Mexico and Vietnam under some trouble at upper stream operation. Chinese mills also increase the price under strong domestic market.

Nippon Steel decided to increase the export price under stable supply balance in the international market. The firm will increase the export price in January-March targeting FOB US$ 850-900 per tonne for black plate and more than CIF US$ 1,000 for tinplate.