Nippon Steel Offers FOB US$ 750/t for Hot Coil to Korean Rerollers

Nippon Steel offered FOB US$ 750 per tonne fro South Korean rerollers including Hyundai Hysco for April-June shipment, which is around US$ 200 higher than January-March, starting the negotiation last week. Nippon Steel tries to increase the price when Asian market increases and raw materials cost should jump for iron ore and coking coal. The firm changes the terms from half year to quarter to reflect foreign exchange fluctuation timely. The firm studies for the export volume for next quarters but the volume could decrease from January-March. South Korean rerollers are suffered from lower price for cold rolled flat steel and galvanizing steel. They increased the price by 65,000-85,000 won per tonne but they are expected to increase the price additionally for better profitability. The rerollers resist the wide hike for hot band by Japanese steel makers. However, hot coil market price increases when South Korean pipe makers agreed to purchase at US$ 730 per tonne. Chinese steel makers offer more than US$ 700 for South Korean buyers. Nippon Steel said the buyers in South Korea and Southeast Asia indicate they would buy the hot band at more than US$ 700. Nippon Steel tries to finish the negotiation with South Korean rerollers in 2 weeks ahead of other buyers.