Price negotiation for steel plate export in October-December is approaching the final stage between Japanese integrated steel makers and South Korean shipbuilders. The price is expected to rise to reflect tight plate supply for shipbuilding in South Korea. Japanese steel makers have offered the price hike due to high raw material costs and tight supply situation.
Japanese plate mills are operating at high level, according to Japanese integrated steel maker source. Japanese shipbuilders’ demand for steel plate is stronger than expected in early fiscal 2010. Japanese shipbuilders have order backlogs while new order receipts are recovering compared with fiscal 2009. The demand is also steady from industrial machine and energy industry. The supply is tightening and export delivery is partially delayed. South Korean plate makers are expanding production capacity but the commercial operations haven’t started yet. South Korean shipbuilders’ demand keeps strong for Japanese steel plate. Japanese plate export increased by 5.2% to 1.236 million tonnes to South Korea for January-August from the corresponding period of 2009. POSCO’s plate selling price is 950,000 won (US$ 849) per tonne for South Korean market while seems slightly lower for shipbuilders.Japan Steel Scrap Composite Prices (Sangyo Press)
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