Japan Steels Eye Substantial Hot Coil Export Hike for F2008

Japanese hot rolled coil export price could increase more with strong demand for manufacturers and price hike by offshore makers to cover potential higher raw materials cost. Japanese steels got US$ 20-30 hike to around FOB US$ 590 per tonne for Asian buyers other than South Korean rerollers for January-March shipment. A steel maker source said the maker could offer more than US$ 100 hike to FOB 650 for South Korean rerollers for April-September shipment to cover higher iron ore and coal cost. Baoshan Iron and Steel of China increased the domestic hot coil selling price by 300 yuan per tonne or around US$ 55 and China Steel of Taiwan increased the price by 700 new Taiwan dollars or more than US$ 20 for January-March shipment. Japanese source said the hikes were more than expected though Japanese industry expected certain hike. Chinese domestic market price increases since November and Chinese steel makers ship more for domestic market instead of export. Asian hot coil price increases under tighter supply. Baosteel settled price negotiation at CIF US$ 620 per tonne for South Korean rerollers for January-March, according to Japanese source. Japanese and Asian steel makers consider substantial price hike for hot coil for April and after to cover higher raw materials cost.