Japanese integrated steel makers will offer 5,000 yen per tonne of contract plate price hike to domestic shipbuilders for October shipment. They start the negotiation for the hike 0in July when the plate price is still lower than international price, other contract prices and sheet and other steel prices. The makers also try to improve the extra charge for shipbuilding plate. Japanese steels increased the shipbuilding plate contract price gradually with consideration of position of shipbuilders, which had order backlog with lower building price, though Japanese steels increased the plate price in first half and second half of fiscal 2005 ended March 2006. An official of Japanese major steel said the contract price is much lower than around 75,000 yen per tonne in 1990 citing the maker has to increase the price more with surging cost of raw materials and energy in past 2-3 years to keep stable supply. The steels apparently try to increase the price by around 5,000 yen per tonne for second half of fiscal 2006 though they don’t disclose the detail with the nature of individual negotiation. The steels will increase the extra charge for high valued plate when shipbuilders use more high tensile plate though the steels focused on base price hike before. The steel also try to increase the plate export price for South Korean shipbuilders for October shipment as domestic contract price negotiation.
Japan Steel Scrap Composite Prices (Sangyo Press)
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