The TEX reported that Japan’s negotiations on steel plates for shipbuilding were finalized for shipment of the H1 of 2014. It has been for the first time in 9 half years since the latter half of 2009 that the contract term was settled in a half year.
Settled contents are not certain, and although the Japanese mills’ contract term was a half year one with shipbuilders, details are not ascertained because there were various cases that prices were set in distinction from those for January and March to for April to June, one price for 6 months was set and so on.
Meantime, they seem to have adjusted their prices slightly (a decrease in price) in most cases compared to those for the quarter of October through December 2013.
Korean shipbuilders are still in the midst of adverse circumstances. Accordingly, they put strong pressure to cut prices against the Japanese mills too. When negotiations of this time had been commenced, the contract term had been for the quarter of January through March.
However, the Korean side strongly requested a decrease in price while the Japanese mills pushed back forcefully against such requests. As a consequence, negotiations were not finalized within the quarter and postponed to the quarter of April to June.
Under the circumstances, both parties had continued negotiations by rescheduling the contract term to the period of January to June. Against the backdrop of slight adjustment in prices (price decreases), there is the fact that POSCO lowered its prices by USD 20 to USD 25 in dollar equivalent for shipments of February through April and May through July instead of semi-annual periods. Correspondingly, it is said that the Japanese mills had to follow this.
Source – The TEX Report