Sumikin Bussan to Raise Hot Coil Selling Price

Sumikin Bussan Corp. tries to increase the reselling price of hot rolled flat steel products including pickling steel by 1,000-2,000 yen per tonne. The firm already started the notice to the users. The firm improves the profitability through the third hike since autumn of 2006 under higher cost price and tight supply. Other distributors and processors are likely to follow the move lifting the market price.Japanese integrated steel makers have no reserve capacity to secure hot rolled flat steel supply for distributors under firm demand for manufacturers, mainly for automakers. The distributors have some stock out sizes, especially for sheet with 1.6, 2.3 and 3.2 millimeters thick and medium plate with 9.0-12.0 mm thick under lower import level. The supply is likely to keep tight when China could reduce export tax return. The distributors’ cost price increased after Tokyo Steel Manufacturing increased the price by 3,000 yen per tonne for hot rolled sheet by January order and by additional 3,000 yen for hot coil and sheet for February order. Chinese hot coil market price increased by 3,000 yen per tonne from the beginning of the year. Japanese hot coil market price is expected to increase nationwide though the smaller distributors couldn’t pass the higher cost price on the reselling price under lower demand due to central purchase by major users.