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Price negotiation on SBQ steel plates deadlocked in Korea

TEX reported that negotiations on steel shipbuilding plates among the Korean mills like POSCO and the Korean shipbuilders have been deadlocked and have not been settled yet while the Chinese mills and so on have a stance to proceed with negotiations on plates for Korea for shipment of next quarter (July to September) and it is attracting attention whether they will quote price down again.
The Korean blast furnace mills like POSCO and electric furnace mills seem not to have accepted request of price down from the shipbuilders, and to have sill been insisting on a price freeze. The Japanese mills are said to have been waiting to see price negotiations in that country.
The reason that the Korean plate mills have not accepted price down seems that they do not have a room to cut their prices as their profitability is getting worse. Especially in case of Dongkuk Steel Mill, as prices of material steel slabs for making plates from Brazil and so on exceed slightly USD 600 CFR and price reduction leads directly to a deficit, the company is in a position to offer strong opposition to price cut.
However, it is said that as import prices of plates can be reduced in dollar due to the weakening won, and a settlement point begin to come in view, negotiations are likely to be concluded by a slight price down (USD 10 to USD 15). If it will happen, the Japanese mills' plates for Korea will become surely the similar level of price down. In any case, movement of both the Korean and Japanese mills to settle in negotiations on plates for this quarter shipment will appear shortly.
It begins to draw attention on negotiations for next quarter shipment rather than foreseeable those for this quarter shipment. It is because the Chinese mills will start negotiations shortly for next quarter shipment. In this quarter, they created a favorable base for the shipbuilder's side by reducing their prices up to the middle of the level of USD 600 CFR. In next quarter as well, attention is drawn to see whether they will reduce their prices.
Regarding the Chinese steel market, some items like hot-rolled steel coils are in a patchy appearance but plates are consistently showing a downward trend. If Japan exports plates for China, its price becomes such a level of USD 550 FOB for a shipbuilder. Among the Japanese mills, there is an observation that even Chinese mills will not be able to cut their prices any more. On the other hand, they are foreseen to reduce their prices further in order to secure quantity.
There is a certain level of demand for shipbuilding plates in Korea. The Japanese shipbuilders are also surprisingly performing solidly, and their rolling schedule is said to be in a tightened position. And, as the Korean shipbuilders have got orders of overseas energy related projects such as offshore structures and tanks of oil or gas, demand for plates has not decreased much. As the Japanese plate mills have also got a certain level of orders, they are not in a position to seek quantity.
From the supply and demand point of view, even if the Chinese mills will decrease their prices in next quarter, it can be said not to be the situation for the Japanese and Korean mills to have to follow the Chinese mills. However, due to financial turmoil in Europe, delay of the energy related projects in the region is said to be concerned about, and in addition to this, psychological anxiety of customers seems to be stirring up request of price down.
At present, the Ukrainian plate prices are the level of USD 690 CFR, and those are said to be dropped down hereafter. And, information that the Chinese mills will launch the Asian market seems to induce a mood of price down.
Plates prices of the export market in this quarter seem to remain on slight decrease while in next quarter, attention is drawn to see how the present price level is maintained under a lot of adverse factors.