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| Plate prices become lower than HRC in Asia - 02 Jul, 2009 | ||
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It is reported that current steel market conditions in Asia give commodity grade heavy plates lower prices than HR coils, which indicates a reversal of what usually occurs: higher prices of heavy plates than HR coils. HR coil prices are on the rise in various areas, while heavy plate prices are on the downside. As to HR coils, China's major integrated steelmakers have increased domestic sales prices for July shipments. The price increases by the ton are CNY 500 by Baosteel Co Limited, CNY 200 by Wuhan Iron & Steel Group Corporation and CNY 150 by Anshan Iron & Steel Group Corp. Also, Taiwan's only integrated steelmaker China Steel Corporation has raised its domestic sales price of HR coils by TWD 1,727 per tonne for July shipments. The Chinese and Taiwanese price increases are based on the conclusion that the going prices of HR coils show their lowest level at a time when various users are done with inventory adjustments. In contrast, heavy plates face a continued difficult situation for price increases because demand continues slack in sectors such as construction machinery even though specified demand exists for ship plates. At present, though, it is understood that Korean heavy plate exports at less than USD 400 per tonne FOB are out of existence, with stable exchange rates at around KRW 1,250 to one US dollar and an advance in ferrous scrap prices. In retrospect, there were cases of HR coil deals in Asia at a price level of USD 300 per tonne FOB in the January to March quarter of 2009 and at the beginning of the April to June quarter. But until now, a price level of USD 300 per tonne FOB has disappeared and the going price level has topped USD 450 per tonne FOB. (Sourced from TEX Report Limited) | ||
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