Daido Steel will raise the extra charge by 10-20% for heat treating of special steels in April in order to cover the surging fuel costs and to keep stable supply for growing special steel demand. The firm will also revise the extra charge for some special steels, which are not heat treated but have same functions by other processing technologies. The firm aims to raise the special steels price to meet the level of high-valued products, which are used mainly for automobiles, during its mid-term management plan starting April 2006.Daido Steel has improved the base price of special steels for past 3 years. However, the prices of heat treated and processed products have still gap with the appropriate level for the value. The firm will seek higher extra charge for automakers and bearing makers.The heat treatment cost increases when the energy cost surges for crude oil heavy oil and gas while the production capacity is limited for heat treated products including automotive steel and bearing steel. The firm may have to expand the heat treating capacity more to meet higher demand after the firm adds a heat treating furnace at Chita plant in June 2006.
Japan Steel Scrap Composite Prices (Sangyo Press)12/01/2022
|46600YEN (-200)||47800YEN (-100)|
|337.46US$ (2.86)||346.15US$ (3.69)|
* Average of electric furnaces steel maker's purchasing price in Tokyo, Osaka and Nagoya (per ton)