Steel sheet price negotiation almost finished for April-September contracts between Japanese integrated steel makers and Japanese major electric appliance makers. The price is raised by about 15,000 yen per tonne compared with January-March. The price negotiation started in April, delayed by Japan Earthquake, but the talks advanced after steel raw material prices were mostly decided for July-September.
Japanese integrated steels’ purchasing price for iron ore was US$ 171 per tonne for April-June, up by 25% from January-March. The price maintains almost unchanged for July-September. Coal price jumped by near 50% to around US$ 330 per tonne for April-June from the previous quarter. The price seems to become US$ 315 for July-September. Total raw material cost would increase by approximately 15,000 yen per tonne of steel products. Consequently integrated steel makers offered steel sheet price hike by 20,000 yen per tonne. Electric appliance makers had strongly disapproved the price hike. Appliance makers’ operations were unstable after the major earthquake while international price competition has become even severer. Meanwhile, appliance makers made concessions for long-range relationship with steel makers and stable material procurement.Japan Steel Scrap Composite Prices (Sangyo Press)
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