According to information obtained by a source, some Chinese plural mills seem to have concluded contracts of hot rolled steel coils at increased prices by USD 3 to USD 5 for Korea for June shipment. While, it is reported that some other Chinese steel mills settled at levelling off of prices.
The Chinese mills proceeded with negotiations preceding the Japanese blast furnace mills and settled their prices at levelling off.
The source is observing that as the Chinese mills concluded contracts at decreased prices of HR coils for Korea for April and May shipment, they requested a price recovery, and as a result, customers accepted and adjusted to increase prices within the range of USD 3 to USD 5 for June shipment with certain mills which reduced their prices too much.
Negotiations on HR coils between the Japanese mills and Korean customers have not progressed for June shipment after the consecutive holidays in May. The Korean side is requesting a decrease in prices while the Japanese side is insisting on an in crease in prices, so negotiations have still continued failing to get any closer.
In Korea, POSCO has set out an increase in domestic prices of HR coils by KRW 30,000 for shipments of May through July. For this reason, the Japanese mills are necessary to watch POSCO's negotiations with domestic customers.
And, the won is still appreciating, domestic prices of HR coils in Korea are largely rising in dollar equivalent. This is also one of factors that the Korean side is hard to settle negotiations.
Source - The TEX Report
