Japan Steels Win Over US$ 100/t Hike from Korea Shipbuilders

Japanese integrated steel makers apparently concluded the price talk with South Korean shipbuilders for April-June shipment. The price is around FOB US$ 900-950 per tonne depending on the transactions, which is more than US$ 100 higher than January-March level, while they don’t disclose the detail. The steel makers won certain hike while some negotiations still continue.

Raw materials cost increased by around 25% for iron ore and by near 50% for coking coal for April-June from January-March. The shipbuilding plate supply is tight due to the firm demand. South Korean shipbuilders still need Japanese plate despite of expansion by POSCO and Hyundai Steel.

POSCO increased the plate price by 160,000 won to 1.11 million won per tonne or US$ 1,020 level earlier the year. South Korean shipbuilders accepted the certain hike to fill the gap with Japanese offer.

Japanese integrated steel makers try to realize more than US$ 1,000 per tonne of export price for July-September after they won certain level of price in April-June. The steel makers will offer higher price to keep stable supply under high level raw materials cost and tight plate supply.