Japan sets price target at USD 850 CNF in Asian deals for H beams

TEX reported that a major integrated steel companyintegrated steelmaker's sheet pile exports to Asian
of Japan is considering setting the target price level atdestinations. In China, construction is under way for a
USD 850 per tonne CNF in its H beam and sheet pilespate of athletic facilities in southern coastal provinces
exports to Asian destinations, mainly to China, for Junein relation to the Asian Games to open in Guangzhou in
and July shipments, on which the company's exportNovember 2010.
negotiations are expected to start shortly. TheAccordingly, local demand for sheet piles is surging, in
company has already negotiated part of its sheet pilewhich firm supplies of around 5,000 tonnes are already
exports to China at around USD 840 per tonne CNFunder contract for June shipments. Also, negotiated
for June shipments. As a result, it is likely that theprices of sheet piles in wide sizes are said to have hit
company will seek a higher price level of USD 900 pera slightly less than USD 850 per tonne CNF.
tonne CNF in its sheet exports for July shipments.Meanwhile, an adequate price increase is slow to take
In Asia, transaction prices of various steelhold when it comes to H beam exports by a
products(such as steel sheet pile ,strut channel steel )Japanese integrated steelmaker to South Korea.
are shooting up after it has become clear that theHaving an impact are local H beam stocks at a high
prices of raw materials will advance considerably fromlevel in the repercussions of H beam imports from
April onward. Until recently, prices of steel productsChina. Import arrivals from China totaled 80,000 tonnes
such as heavy plates stood at a low level. At present,in March 2010 and they are expected to total around
though, even prices of heavy plates for shipbuilding40,000 tonnes in April 2010. As far as South Korea's
border on USD 800 per tonne FOB in shipments out ofHyundai Steel Co is concerned, the company has
Japan to South Korea. It was once considered difficultincreased its domestic sales price of H beams by
for a price increase to take effect in those JapanoKRW 50,000 per tonne to KRW 910,000 per tonne. At
Korean heavy plate deals.the same time, the company is said to have abolished
Under the existing circumstances, Japanese exportsits volume discount of KRW 50,000 to KRW 100,000
of sheet piles and H beams should fetch appropriateper tonne. Still, local steel manufacturer haven't
prices of at least USD 850 per tonne CNF, a pricenecessarily accepted the whole of Hyundai Steel's H
level that is commensurate with the going prices ofbeam price increase. As a result, continued
other steel products(such as c channel steel ,u channeltransactions of H beams are reported at KRW
steel ), believe the Japanese parties concerned. As a860,000 per tonne.
result, no Japanese exports of sheet piles and HIn this connection, the going prices of are approaching
beams would be made for June shipments unless theUSD 800 per tonne CNF after they have topped USD
price is agreed at USD 850 per tonne CNF or beyond.780 per tonne CNF both in Japanese and South
Until now, a price settlement of USD 800 per tonneKorean H beam exports to Asian destinations, market
CNF has served as the norm of a Japaneseobservers point out.