Nippon Steel to Hike Sheet Steel Price by 5,000 yen/t

Nippon Steel decided 5,000 yen per tonne of price hike for hot, picking, cold and coated sheet steel for domestic dealers for May shipment. The firm notified the hike of the buyers on Tuesday. The firm increases the sheet price by 5,000 yen for rerollers and pipe makers. The firm tries to improve the profitability through the hike under the recovering demand while the market price decreased since late 2011.

Japanese sheet steel demand improves when automakers plan near 5 million units of domestic production in April-September. The demand also increases for rebuilding activity in earthquake damaged northeast Japan and for reinforcement work against natural disaster. Nippon Steel also recognizes the dealers’ sheet steel inventory gets normal level with some stock out sizes.

The firm expects offshore market also improves when POSCO increases the sheet steel in South Korea and Asian makers increase the export price. Offshore makers also increase the offer to Japanese buyers under lower yen rate. Higher cost for raw materials and energy also supports steel price. Coking coal spot price turns into increase and oil and electricity cost increases while ferrous scrap market keeps higher level.

JFE Steel already announced 3,000-5,000 yen per tonne of sheet price hike for May shipment. Tokyo Steel Manufacturing already increased the selling price by 2,000 yen for April order while the firm keeps the price for May order.

With the makers’ hike, some of the sheet dealers try to increase the offer price. However, the dealers could be resisted by the buyers for the higher price.