JFE Steel tries to increase the selling price of construction materials steel by 20,000 yen per tonne. The firm increased the H-beam price by 10,000 yen for distributors for March production and studies additional hike for April while the firm offers 20,000 yen H-beam hike for major building structural fabricators. The firm also increases the large diameter square steel pipe by 20,000 yen for distributors. The firm indicates additional hike depending on coking coal and raw materials cost for fiscal 2008 starting April. The firm said the price hike needs to cover higher raw materials cost and freight. The firm also tries to improve the price gap between domestic and international steel products. The firm tries to improve the domestic supply condition through major output reduction including 40-50% cut for H-beam shipment for distributors under very slow building demand. The firm expects the steel structural building demand is firm for major high rise building around Tokyo, major plant and warehouse, many of which are planed to start building in and after summer. The firm sees the building activity is getting normalize gradually after the confusion by new building standard law.
Japan Steel Scrap Composite Prices (Sangyo Press)
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