Nippon Steel to Hike Magnetic Sheet by Over US$ 300/t for Jul-Sep

Nippon Steel will offer export price hike for directional magnetic steel sheet to Asian users by over US$ 300 per tonne effective for July-September shipment, when Chinese and Indian market prices are rising due to the demand increase for small electric transformers. Nippon Steel will start price negotiations with the users after Japanese consecutive holidays in early May. The firm penetrated price hike by around US$ 300 for April-June shipment.

Magnetic steel sheet supply is tightening rapidly mainly for small electric transformers, especially in China. In the second half of fiscal 2011 (October 2011-March 2012), demand for large-size electric transformers are also expected to increase. Transformer makers seem increasing material procurement.

In China, the market price of directional magnetic steel sheet is rising by US$ 500-600 per tonne from the beginning of 2011. Wuhan Iron & Steel has raised the selling price step by step. In India, the market price surged by US$ 200-300 during March-April.

On the other hand, market price of non-directional magnetic sheet is increasing for high grade sheet while lowering for low grade sheet. The demand is strong for inverter components along many countries’ environmental control policies while supply of low grade sheet is loosening due to market entry of new sheet makers.