Kobe Steel to Hike Special Bar and Wire Rod by 25,000 yen/t

Kobe Steel announced on Tuesday the firm raises selling price of special and common steel for bar and wire rod by over 20,000-25,000 yen per tonne or 20% effective for April shipment when the firm expects higher material costs and keeps stable supply. The firm will introduce surcharge system for chrome steel in April as well. The firm examines output reduction for thin bar when thin bar productivity is low.The firm raises selling price for all specific users and dealers. The firm has already increased the selling price by 10,000 yen per tonne in 2007.The firm increased crude steel capacity by 10% in Kobe iron works to produce steel bar and wire rod. However, the works already keeps full operation due to increasing demand. The supply is also tight abroad. Japanese steel bar and wire rod price is lower than European price by about 40% and than American price by 30%. Kobe Steel said users’ competition power would improve after price hike.The firm introduces surcharge system such for bearing steel or alloy steel applied to machine structural use due to increasing chrome price. The firm introduced surcharge system for molybdenum and vanadium in fiscal 2005 and for nickel in fiscal 2007.