Plate Price Negotiation Becomes Heavy Tangled by Japanese Steel Makers and South Korean Shipbuilders

Plate price negotiation between Japanese integrated steel makers and South Korean shipbuilders is postponed for July-September shipping. Japanese steel makers aim to increase to FOB US4 900 per tonne, while South Korean shipbuilders accepted offer price is overlarge.

The price negotiation by them for April-June shipping was at the first half of US$ 700 per tonne when the supply and demand balance was tight in international market or raw material price is rising. POSCO and Dongkuk Steel, South Korean major steel makers raised plate price to 950,000 won or US$ 780 by 50,000 won in July to domestic market, while Japanese steel makers offered the selling price at over US$ 780 to South Korean shipbuilders.

The amount of shipbuilding was firm by South Korean shipbuilders, but Japanese plate export decreased to South Korean shipbuilders for April-June shipping when the price negotiation was hard and South Korean shipbuilders purchased Chinese steel plate.

Japanese steel makers maintain price policy at US$ 900, which contracted at over US$ 1,000 for energy industry or construction machine.

Because Dongkuk Steel and POSCO build up plate production, Japanese plate export may decrease to South Korean shipbuilders.