Sunday, 26 October 2014

Japanese mills negotiations on EG sheets for China - TEX

TEX reported that negotiations on electro galvanized (EG) steel sheets for China have started for November shipment. The Japanese mills are in a stance to proceed with negotiations to be on a track to maintain levelling off of prices.

In China, major blast furnace mills like Baoshan Iron & Steel and Wuhan Iron & Steel lowered their domestic prices by CNY 100 for October shipment. However, as some Japanese mills reduced their prices in negotiations for shipment of August and September preceding Chinese mills, they have a policy to insist on levelling off of prices for November shipment being independently of Chinese mills' price decrease.

Other Japanese mills are also in a stance to refuse a request for a price decrease as Chinese mills' price decrease is to have revised their list prices being too high and it is supposed to have little impact on the market.

Not only in China but also in other countries, negotiations on steel products for home appliances are in a fierce competition. In the past, amid competition among home appliance manufacturers having entered into overseas, blast furnace mills of Japan, Korea, China and so on have been engaged in a price cutting war.

Nowadays, in addition to it, as Chinese parts makers of home appliances are exporting their parts to Thailand and so on due to decreases in domestic demand, global competition among parts makers has become severe.

For this reason, Japanese prices of both hot-dip galvanized and EG sheets which have been maintained for Japanese overseas companies are showing a sign of collapse in Thailand and so on.