Japanese integrated steel makers started price negotiations for plate export with South Korean shipbuilders for April-September 2010 shipment. The makers seem to offer the price hike from current FOB US$ 600-650 per tonne for the previous 6-month shipment. Iron ore and coal prices are expected to rise in fiscal 2010 starting in April.
South Korean shipbuilders’ order receipts decreased by around 90% in 2009 from 2008. The shipbuilders would show disapprovals against Japanese integrated steels’ price hike. International plate market price is currently estimated at US$ 550-600 per tonne. The market price is expected to rise when the demand is recovering from construction machines or energy related industries in Asia. South Korean shipbuilders have order backlogs for 2-3 years accepted until 2008. South Korean major steel makers would increase their plate outputs in the last half of fiscal 2010. The shipbuilders are likely to maintain the purchase volume for Japanese plates.Japan Steel Scrap Composite Prices (Sangyo Press)
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