Nippon Steel to Raise Hot Coil to US$ 900/t to Korean Pipe Makers

Nippon Steel agreed with South Korean pipe makers to increase the hot rolled coil price to record FOB US$ 900 per tonne for April-June shipment. The price is higher than around US$ 750 for South Korean rerollers settled in mid-February and more than US$ 800 for buyers in Southeast Asia settled in early March. The export price increases under higher international market. Worldwide hot coil supply is very tight under strong demand. Japanese integrated steel makers try to increase the output capacity by improving the processes but they have limited additional supply ability with strong demand from automobile and other industries. The steel makers try to increase the selling price worldwide to cover higher cost for iron ore, raw materials, energy and freight. Hot coil price hit 600 euro per tonne in Europe and US$ 900 per tonne in USA. However, the price increase is peaking recently when Chinese market keeps the level. Nippon Steel starts price negotiation with South Korean rerollers in early May for July-September shipment. The firm studies the offer price depending on rerollers’ demand condition, Asian market and foreign exchange rate.