Nippon Steel to Improve Zinc Extra for Coated Steel Sheet

Nippon Steel decided to improve zinc extra price for hot dip zinc coated steel sheet, which carry out from the order in the first half of fiscal 2007 at the ended of March 2008. The firm sets the zinc extra with zinc thickness and steel sheet thickness. New extra would be about double in the first half of fiscal 2007 compared with existing extra, which would target for domestic all contracted users and all dealers. The firm already started the negotiation about new extra with users. the firm’s group makers, such as Nippon Steel & Sumikin Coated Sheet Corporation or Hokkai Koki, are expected to introduce same measure. Higher zinc price press each steel makers’ profit. Other steel sheet makers, such as JFE Galvanizing & Coating, Yodoko or Nisshin Steel, launched out the measure which is change in extra or introduction of surcharge system against higher zinc price. Nippon Steel sets new extra at 350,000-500,000 yen per tonne in the first half of fiscal 2007 based domestic average official zinc price at 450,000 yen per tonne in last year for March 2006-February 2007. New zinc extra is 2,000 yen per tonne for zinc coated steel sheet which is made cold rolled steel sheet with over 1.0 millimeters thick and is coated with zinc of 120 gram per square meter in the firs half of fiscal 2007 from existing extra at 1,000 yen per tonne, while is 56,000 yen per tonne for zinc coated steel sheet which is made cold rolled steel sheet with below 0.22 millimeters thick and is coated with zinc of 275 gram per square meter in the firs half of fiscal 2007 from existing extra at 31,000 yen per tonne, The firm will improve new extra every half year, which will set new extra based domestic average official zinc price in last year for September 2006-August 2007. If the average official price would be below 350,000 yen per tonne or over 500,000 yen, the firm will apply other extra.