TEX reported that Japanese integrated steelmakers face tough price negotiations in their export deals of electrolytic galvanized sheets with Japanese affiliated consumer electronics manufacturers operating in Asia, mainly in China, for shipments in October 2009 to March 2010 period.

The negotiations have yet to bring a settlement even though they have dragged into mid October. A price increase of USD 100 per tonne is on offer from the Japanese steelmakers. But the Japanese-affiliated consumer electronics manufacturers indicate no move to accept the price increase on the argument that demand is lagging in the field of office automation equipment.

On their part, the Japanese steelmakers are contemplating taking time to negotiate the price increase. They describe the current price level of their EG sheet exports to Asian destinations as lower by nearly USD 100 per tonne than what China's major integrated steelmakers such as Baosteel Co charge for domestic sales of EG sheets. Therefore, the Japanese steelmakers are apprehensive that they may face an antidumping case in China unless they achieve the price increase on offer.

Meanwhile, it is understood that the Japanese-affiliated consumer electronics manufacturers find themselves in tough operations as various customers continue to hold back on replacement purchases of office equipment such as copying machines in the repercussions of the world's deteriorated economic situations last year. As a result, they have yet to make any bid to the price increase on offer from the Japanese steelmakers.