Hanwa Co. will increase the selling price of hot rolled flat and pickling steel by 2,000 yen per tonne in Tokyo, Osaka, Nagoya and Tohoku areas for February shipment. The firm tries to realize 70,000 yen of selling price for hot rolled steel from the coil processing center as early as possible. The firm tries to pass the higher cost price and eyes additional hike for March shipment. The firm decided the hike when the domestic market price increases for hot rolled flat steel and other steel products under firm demand at home and abroad though Chinese raw steel output keeps increasing. The firm expects Chinese steel makers increase the export price to Japan and will increase more with increasing Chinese steel market price and lower yen exchange rate. World wide supply of iron ore and ferrous scrap is tight and is expected to get tighter. Japanese domestic supply of hot rolled flat and pickling steel got tight when the inventory is getting lower level. Hanwa will increase the selling price to cover higher cost price under the favorable condition.
Japan Steel Scrap Composite Prices (Sangyo Press)
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