Nippon Steel to Increase Wire, Bar Price by 20,000 yen/t for April

Nippon Steel announced on Tuesday the firm increases selling price of carbon steel wire rod and bar-in-coil including deformed type by 20-30% or 20,000 yen per tonne for April shipment for domestic buyers. The firm increases the price for the first time since July 2010 when the firm cannot cover higher cost for raw materials and energy including iron ore and coal in and after April despite of the own effort. The firm also starts negotiation to increase price of high carbon, special steel wire rod and bar for domestic shipment and export.

Carbon steel wire rod shipment is firm mainly for East Asia while steel raw material price is increasing partly due to flood in Australia. The firm expects higher international price also supports the price hike when cheaper imported Chinese wire rod price is gradually increasing since last autumn to narrow the price gap with domestic products.

Electric furnace steel makers increased carbon steel wire rod selling price at early stage to cover higher ferrous scrap cost. Tokyo Steel Manufacturing increased the price for 4 months in a row through March order. Godo Steel and Nakayama Steel Works increased the price by 10,000 yen per tonne for February order.

Japanese makers and dealers of steel wire rod and bar products try to increase the margin after market price decreased in second half of last year. They try to pass the higher cost price on the selling price when steel makers increase wire rod and bar selling price.