Japanese integrated steel makers prepare for wide hike offer for shipbuilding steel plate for South Korean shipbuilders for fiscal 2008 starting April. The steel makers try to increase the price under tight supply and potential wide cost increase for iron ore and materials. They could offer FOB US$ 900-1,000 per tonne compared with 630-640 for fiscal 2007. Some makers study to shift from current US$ base to yen based contract to avoid foreign currency risk. Plate supply is tightest steel item with worldwide strong demand for shipbuilding, energy industry and construction machinery. Japanese steel makers cannot meet the strong demand despite of the expansion. The market price increases worldwide and some spot prices exceed US$ 1,000 per tonne. Japanese steel makers would increase the extra charge for size and grade to reflect the cost and value for better profitability.
Japan Steel Scrap Composite Prices (Sangyo Press)
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