Nippon Steel to Hike H-Beam by 12,000 yen/t

Nippon Steel announced on Wednesday the firm increases the selling price of H-beam by 12,000 yen per tonne for distributors for February order, which is the first hike in 6 months. The firm tries to improve the lower price than international level under higher raw materials cost while the firm keeps cutting the order by more than 80% from normal level. The firm indicates additional hike depending on the raw materials price for fiscal 2008. South Korean makers increased H-beam price by 100,000 won per tonne and US makers increased the price by US$ 100 per tonne while the price increased by US$ 80-100 in China. Nippon Steel said the price will be still lower than international level and the firm keeps trying to improve the price after March. The distributors try to increase the reselling price to 95,000 yen per tonne level to pass the higher cost price. They target 88,000 yen level in the week and some dealers will offer 95,000 yen next week. The price could increase with pressure by supply side.