Negotiations on steel plates for shipbuilding for shipments of this quarter (July to September) between the Japanese mills and the Korean major shipbuilders like Hyundai Heavy Industries have not progressed yet and remain stalemated. While, such information is spreading that some Chinese mills concluded contracts at a slight reduction in price.
As the Korean side got a price reduction for contracts with China, it is predicted that it places mounting pressure to lower prices against the Japanese mills.
As the domestic demand for steel plates in Japan is brisk, the Japanese mills are not necessary to go out of their way to get orders for export and are requesting an increase in price. Against it, the Korean shipbuilders have commenced construction of vessels when they got orders at the cheapest prices and are asking for a price decrease to save the material costs.
As the domestic negotiations on ship plates have still continued in Korea, the Japanese mills do not accelerate negotiations and keep watching the situation. However, it was lately reported that Chinese mills accepted a price decrease even slightly (within USD 5). It is felt that prices of ship plates for Korea this quarter trend towards falling.
AS Korea’s POSCO and so on have not shown a stance to accept a decrease in price yet, the Japanese mills are to keep watching the course of negotiations in that country. Shipbuilders’ summer vacation starts soon, so negotiations will remain stalemated until mid-August. Some foresee that negotiations will be finalized in September as the case may be.
Source – The TEX Report