JFE Steel Offers Hot Coil Hike to US$ 1,150/t to Korean Re-rollers

JFE Steel started price negotiation of hot-rolled steel coil for October-December shipment with South Korean re-rollers such as Hyundai Hysco. JFE Steel offered more than FOB US$ 1,150 per tonne, increasing by over US$ 150 compared with July-September shipment. The firm conveyed to decrease selling volume by 20-30% in October-December shipment compared with July-September shipment. Nippon Steel already offered to increase the priced by FOB US$ 100, and to decrease selling volume by 50%. Steel sheet market price changed in Asia though had increased largely. Hot-rolled steel coil price hit ceiling in China or South Korea due to decreased their economy. However, high grade steel sheet made by Japanese integrated steel makers such as JFE Steel keeps tight supply. Manufacturing industry such as automobile or industrial machinery is placing large order to JFE Steel. South Korean re-rollers are resisting Japanese makers’ price hike due to decreased steel market price in Asia. Meanwhile, they become hard to purchase hot-rolled steel coil when JFE Steel and Nippon Steel cut the export of hot-rolled steel coil, and POSCO decreases the supply of hot-rolled steel coil by the refinement of electric furnace from October.