Nippon Steel, Kobe Steel Get 20,000 yen/t Hike for Casting Pig Iron

Japanese integrated steel makers are getting 20,000 yen per tonne or more hike for pig iron for castings at ongoing negotiation for April shipment. Nippon Steel said around 20,000 yen hike and Kobe Steel said more than 20,000 yen hike before. They try to pass higher cost price through the hike for the first time in 3 years.They are getting the higher price when Japanese import price of pig iron for castings reached CIF US$ 720-730 per tonne for April arrival compared with around US$ 350 3 years ago. The makers indicate additional hike depending on the negotiation for coking coal price. The domestic demand of castings is estimated to be around 5 million tonnes in fiscal 2007 ending March 2008 compared with 4.91 million tonnes in fiscal 2006. The demand has increased for 6 years in a row with firm demand for automobile and industrial machinery. Automobile application represents more than 50% of the domestic demand while industrial machinery represents around 15%. The casting material is estimated to be near 700,000 tonnes for pig iron and more than 4.3 million tonnes for casting scrap in fiscal 2007. Nippon Steel supplies more than 600,000 tonnes of the pig iron while the users purchase the pig iron from Kobe Steel and offshore suppliers.