Nippon Steel starts hot rolled coil price negotiation with South Korean rerollers including Hyundai Hysco in the week for half year shipment starting October. The firm apparently offers around US$ 20 per tonne of hike. South Korean rerollers seek higher purchase volume while Nippon Steel has no additional capacity to increase the export. Asian hot coil demand is firm due to strong demand, especially for manufacturers. The supply is expected to get tighter in and after September when POSCO of South Korea plans major outage for hot rolling facilities. Chinese sheet steel market also rebounded after the temporally adjustment. South Koran rerollers ask Japanese steel makers to increase the supply volume. However, Nippon Steel expects the hot coil export volume could decrease in October-December from July-September to meet stronger domestic demand for automobile and other applications. The firm is likely to talk with South Korean rerollers mainly if the firm could meet the higher hot coil volume request from South Korea.
Japan Steel Scrap Composite Prices (Sangyo Press)
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