Nippon Steel to Ship FOB US$ 1,000/t Hot Coil to Korean Rerollers in July

Nippon Steel concluded the hot rolled coil price negotiation with South Korean rerollers including Hyundai Hysco by Thursday to increase the price to FOB US$ 1,000 per tonne for July-September shipment. The price increased by more than US$ 250 from April-June under higher cost for iron ore, coking coal and energy and higher worldwide steel market. South Korean rerollers resisted the wide hike when cold rolled flat steel and coated steel price is relative lower in South Korea. They discussed temporally gradual increase in July, August and September. However, the rerollers finally accepted the hike to secure the material when their dependence on Japanese hot coil with supply reduction from POSCO with repair of electric furnace and from Chinese makers with impact of major earthquake. The rerollers are expected to pass the higher cost price on the selling price. Nippon Steel could increase the hot coil export price to Southeast Asian buyers at coming negotiation when some buyers already submit more than FOB US$ 1,000 per tonne for July-September.