JFE Steel Gets 60,000-70,000 yen/t Hike for Grain Oriented Electrical Steel

JFE Steel agreed with Japanese heavy electric machinery and transformer makers to increase the selling price of grain oriented electrical steel by 60,000-70,000 yen per tonne for April 2007 shipment retroactively. JFE Steel succeeded to get the hike to keep stable supply under tight supply when electricity demand grows worldwide. Grain oriented electrical steel, which has magnetic properties due to unidirectional steel grain, is used for transformers. Developing countries including Brazil, Russia, India and China increase the electricity supply expanding electrical steel demand for power generator and transformer. The supply is very tight especially for grain oriented electrical steel duet o limited suppliers in the world. JFE Steel urged price hike to domestic users in order to keep stable supply under tight supply. The users resisted the attempt at first but finally accepted the hike to secure the supply stably when they expect the supply is likely to keep tight under strong demand. JFE Steel expects the transformer makers try to improve the efficiency more for better energy saving when environmental issue gets more sensitive. The firm expects the supply of grain oriented electrical steel keeps tight especially for high grade items.