Kobe Steel to Hike Aluminium, Copper Products by 10%

Kobe Steel announced on Friday the firm increases the rolling margin of aluminium and rolled copper products by around 10% or 20-30 yen per kilogram for July shipment. The firm tries to cover higher cost for freight and energy along with subsidiary materials including magnesium and silicon. The firm will also increase the price level at the group companies. The firm increases the price for copper flat and strip products, aluminium flat, extrusion, casting and forging products and processed products. The firm tries to seek higher price to users just after the firm succeeded to agree with uses to increase the price for aluminium can materials and flat products for April. The firm expected the cost up for aluminium and copper business unit is 2.7 billion yen for fiscal 2008 started April from fiscal 2007 when the firm made the business plan for fiscal 2008 in February. However, the cost expanded to more than 5 billion yen due to higher price for energy and materials. The firm said the wide cost up is beyond the own effort while the firm tries to realize 2.5 billion yen of cost down in fiscal 2008 from fiscal 2007. The firm indicated further hike depending on the cost factors. The firm produced 299,300 tonnes of aluminium flat products, 36,000 tonnes of aluminium extrusion and 66,500 tonnes of copper flat and strip products in fiscal 2007. Sumitomo Light Metal Industries already announced 10-20% hike for rolling margin for April shipment. Showa Denko increased the price by 10-15% for aluminium flat and extrusion for June shipment. Other makers also try to improve the profitability under the higher cost condition.