B2B Portal for Technical and Commercial Foundry Management
Foundry Daily News

Nippon Steel starts TMBP export negotiations for Asian shipments

TEX reported that, with price increases of JPY 100 to JPY 150 per tonne on offer, Nippon Steel Corporation has begun negotiations this week on its export deals of TMBP for shipments to Asian destinations in the January to March quarter of 2010.

The offer prices in the negotiations are estimated at a level of USD 950 per tonne FOB. NSC is contemplating getting the negotiations into advanced stages late this week so that the company can shape up a new export market in the rest of October for its Asian deals of TMBP.

Japanese integrated steelmakers already told various tinplate manufacturers in Asian destinations that a price increase would apply to Japanese TMBP exports for January to March shipments next year as well. The notice was made when the Japanese steelmakers held negotiations on their TMBP export deals for October to December shipments this year. At the time, the Japanese steelmakers gave an explanation to the effect that a cumulative TMBP price increase of around USD 200 per tonne is necessary for shipments in October to March next toward stable TMBP supplies for the tinplate manufacturers concerned.

The Japanese steelmakers faced an advance of USD 350 per tonne in import prices of blast furnace feed in 2008. But what they have secured as a price reduction is a mere USD 150 per tonne in negotiated 2009 imports of blast furnace feed. As a result, they need to get a pass along of USD 200 per tonne in their TMBP export deals, thereby holding down the costs of blast furnace feed to the level of 2007.

For Q4 shipments this year, the Japanese steelmakers have achieved a TMBP price increase of around USD 100 per tonne in the wake of their Asian customers' understanding of the background in point. As a result, most of the deals are settled at slightly below USD 800 per tonne FOB, with a high of beyond USD 800 per tonne FOB. On the occasion of the negotiations held on Q4 shipments, the Japanese steelmakers described their TMBP price requirements as a level of USD 900 per tonne FOB for shipments in October to March 2010. Therefore, it follows that the Japanese steelmakers are on track to seek another TMBP price increase of around USD 100 per tonne for Q1 shipments next year.


Youtube Linkedin Xing