Japan Steels to Hike Steel Export Price by Max US$ 300/t

Japanese steel export price surges for April-June. The price increases by US$ 150-250 per tonne for sheet steel and by US$ 230-300 for plate compared with January-March. Japanese makers offer more than US$ 200 hike for special steel wire rod, electrical steel and steel pipe for offshore transplant of Japanese manufacturers and some buyers accepted the higher price. Asian spot plate market exceeded US$ 1,000 and the market could increase more toward July-September. Steel makers accepted 65% higher iron ore price for fiscal 2008 and coking coal price is expected to jump. Steel makers try to cover the higher cost for energy, freight and raw materials including alloy and ferrous scrap through the wide hike. Baoshan Iron and Steel of China indicates additional hike depending on cost factor after 600-1,000 yuan per tonne increase for major steel items for April-June. Arcelor Mittal increased the European sheet steel to 600 euro per tonne for hot rolled coil and to 680 euro for cold rolled and coated steel for April shipment. World steel consumption is estimated to increase by 7.7% to record 1.217 billion tonnes in 2007 from 2006 and will increase by 5.7% to 1.287 billion tonnes in 2008, according to Japan Iron and Steel Federation. The demand growth especially in developing countries supports the higher steel price. Japanese trading firm source said the international steel price is US$ 800 per tonne for hot coil, US$ 900 for cold coil, US$ 1,000 for coated steel and plate. Steel price is higher in South America and Middle East and could increase more toward July-September.