Japanese integrated steel makers agreed price hike of steel plate by 13,000 yen per tonne with domestic construction machinery for April-September 2011 shipment from October 2010 -March 2011 and the makers are closing on price hike by same range with domestic shipbuilders. There is variability of range for price hike. The price is expected to increase by 13,000-15,000 yen per tonne for other users. Some makers are continuing price negotiation with users.
Each Steel maker offered price hike by over 15,000 yen per tonne to users for April-September sales. The negotiation protracted when shipbuilders and construction machine makers resisted for significantly cost up. The demand of steel plate is firm for shipbuilding, which is expected to be flat at over 4.8 million tonnes in fiscal 2011 from fiscal 2010. The demand is brisk for construction machine and truck though there are worries such as aftermath from financial restraint in Asia. The demand is low for domestic building construction. Domestic plate market price has risk to decrease in the future. However, large building projects start construction in the last half of fiscal 2011. The demand is expected to incarnate for earthquake disaster reconstruction. Many users accepted steel makers’ price hike as a condition for stable supply of steel plate by steel makers.Japan Steel Scrap Composite Prices (Sangyo Press)
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