Nippon Steel will introduce 3,000 yen per tonne of extra charge for special care to avoid defect of special steel bar and wire rod for the first half year of fiscal 2006 starting April. The firm secures special charge to meet the function and extra value when the products supply is expected to keep tight in long term especially for automobile and the users seek higher quality along with the volume. The firm also revises the price gap of steel bar, wire rod and bar in coil. The firm will start the negotiation with makers of automobile, auto-parts, construction machinery and bearing.
The firm increased the base price of special steel bar and rod for 3 years in a row to cover higher cost of raw materials. The firm couldn’t get some of the extra charge though the firm started the talk with users for the revision last year. The firm tries to introduce 3,000 yen per tonne of extra charge for some rod products for cold forging and heading wire, which need high precision inspection to screen out damaged products. The firm increases the selling price of special steel wire rod and bar in coil to increase the price gap with special steel bar. The firm also revises other extra charges for special steel bar with less than 25 millimeters diameter and heat treated steel bar depending on additional processing and energy cost.Japan Steel Scrap Composite Prices (Sangyo Press)
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