Japan Tube Makers Agree in Price Hike with Automakers in F2008

Japanese major welded steel tube makers agreed with automakers and auto component makers in price hike of steel tube for fiscal 2008 ending March 2009. They concluded price negotiation for machine structural tubes at the end of December 2008 and for stainless steel welded tube in January 2009. Price negotiation for fiscal 2009 has not started yet. However, automakers and auto component makers are already requesting price cut against tube makers when their sales keep slow and material supply is loosing.

Japanese integrated steel makers raised the selling price of steel coil in fiscal 2008 to reflect the upsurge of material costs. Tube makers increased the selling price by 35,000 yen per tonne for structural tubes and by 30,000 yen for stainless steel welded tubes. Then they started the price negotiation with automakers from July 2008.

Tube makers agreed in the price hike with most users during the first half of fiscal 2008 while continued talks with the rest users in the last half of fiscal 2008. Tube makers could almost increase the selling price.