Nippon Steel Raises Plate Price by 20,000 Yen/t in March

Nippon Steel raises selling price of steel plate and checkered steel plate for domestic wholesalers and structural application users by 20,000 yen per tonne effective for March contracts. Steel plate supply is expected to tighten more while productive costs are likely to jump up. The firm started price hike announcement to dealers and users last week.

Demand for steel plate maintains high level from shipbuilding and energy industries while recovers from buildings and bridges, according to Nippon Steel. Meanwhile, domestic plate makers are unlikely to build up supply capacities. Thus supply and demand balance would tighten more.

Nippon Steel previously announced plate price hike against domestic wholesalers and structural application users by 10,000-15,000 yen in January to improve too low price level. The firm decided additional hike for moderate profitability and stable supply. The firm also plans to offer plate price hike to large-lot users including shipbuilders.

The firm’s plate price is expected to exceed current market price of processed plate at 95,000-100,000 yen per tonne. Dealers such as shearing processors would raise their reselling prices after makers’ price hike.