US customers have accepted producers' proposals for an average 7 percent hike on coil prices, albeit reluctantly. So far, quarto plate values have not been affected. Market activity is good with domestic mill lead times of 6 to 8 weeks. February alloy surcharges for grade 304 are higher by 6.8 percent, whereas those for type 316 material have fallen by 4.2 percent. Japanese coil prices are unchanged. The market is sluggish. The plate segment remains weak. The transaction price decrease of RMB10,000 per tonne that was conceded last month has not been recovered. As forecast in our January issue, Posco has successfully raised strip and plate transaction prices in South Korea by KRw200,000 per tonne. The movement of nickel has been an important factor in the decision. Additionally, the company's planned revamp of its hot rolling facility in March/April is causing supply to tighten already, as coil centres and end users, fearing shortages, are buying in advance.
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