Nippon Steel started the hot rolled coil export price negotiation on Monday to offer US$ 100 per tonne hike for South Korean rerollers for October-December shipment. The firm informed the firm that the firm halves the shipment compared with regular volume when the firm should build steel inventory preparing for blast furnace relining at Oita works under limited steel source after fire accident at coke plant in Yawata works in July. Nippon Steel originally planned to offer the price for South Korean rerollers in mid-August. However, the firm tried to find the impact of coke oven fire at Yawata. The firm didn’t disclose the detailed impact of the accident while the firm should reduce the export volume when the firm builds slab inventory for operation during relining at Oita. The firm already got FOB US$ 1,000 per tonne from South Korean rerollers for July-September. Japanese interests see Asian market shows sign to peak when the hot coil price decreases in China and South Korea. However, Nippon Steel sees the supply of high valued products is still tight due to limited supply when POSCO starts maintenance at the mini-mill operation in October to reduce the hot coil sales while Baoshan Iron and Steel is expected to start blast furnace relining. Nippon Steel tries to seek higher price when the buyers show strong attempt for the supply under the tight Asian hot coil market.
Japan Steel Scrap Composite Prices (Sangyo Press)
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