Japanese Steels Start Sheet Export Price Negotiation with Appliance Makers

Japanese integrated steel makers started the price negotiations for steel sheet export for April-June shipment. The steel makers are seeking how much to set the price when raw material price negotiations haven’t finished for fiscal 2010 starting in April. Some of the steels seem to have announced the price hike by US$ 150 per tonne to appliance makers compared with January-March shipment. The steel makers also aim to change a conventional contract method to set the price in accordance with the shipping date.

Steel sheet supply keeps tight in Asia especially for cold rolled sheet and electrogalvanized sheet thanks to the expanding demand in China. As the same time, Japanese steel makers expect raw material prices would rise in fiscal 2010 to follow the upsurge of Chinese spot price. The export price negotiations are based on the international market price conditions but, a source of Japanese integrated steel maker said, raw materials’ cost up must make an impact on the sheet market price.

Chinese sheet market price recently levels off before Chinese New Year holidays starting on February 14th. Appliance makers are in wait-and-see stances. Japanese steel makers are willing to improve profitability while sheet users are likely to show strong disapprovals against the price hike. The price negotiations will progress after February 22nd when Chinese New Year holidays end.