Japan Integrated Steels to Rebuild Sheet Price for Dealers

Japanese integrated steel makers would increase steel sheet selling price for the dealers by 15,000 yen per tonne or more when the makers got higher price from contract users including automobile and electronics industry.

The integrated steels’ steel sheet selling price increase slowed under supply chain disruption after the major earthquake in March. The dealers resist price hike due to demand slowdown and higher inventory after the quake. However, the integrated steels try to increase the selling price to cover higher raw material cost of around 15,000 yen per tonne.

The integrated steels agreed with electronics makers to increase steel sheet selling price by around 15,000 yen per tonne for April-September and some car makers also agreed price increase.

The integrated steels try to increase the selling price for the dealers when the steel makers expect higher actual raw materials cost without carryover effect in and after July. The makers try to improve the margin through the hike to improve the profitability.

Japanese steel sheet held by steel makers, dealers and members of coil centers group was high at 4.2 million tonnes at the end of May. However, the integrated steel source sees the stock is decreasing due to output reduction and recovery of the demand for manufacturing. The integrated steels could reduce the order receipt from the dealers to meet the recovering automobile demand.