Nippon Steel Hikes H-Beam by 3,000 yen/t for Dealers

Nippon Steel notified H-beam dealers of 3,000 yen per tonne price hike for December order, which is first hike in 7 months. The firm tries to improve the profitability to keep stabile supply when the market condition improved after the inventory adjustment. The firm indicates additional price hike as early as possible.

The domestic demand hit bottom for small sized buildings while worldwide market price of ferrous scrap and other raw materials increases under growing steel demand. The firm tried to find the timing to increase H-beam price for distributors while the firm already increased the price for domestic building projects.

Nippon Steel increased H-beam price by total 28,000 yen per tonne through price hikes for 4 months in a row from February. However, the firm kept the price unchanged in June while the firm stopped new order receipt from the dealers in July-August. The firm received the order since September order but the firm kept more than 70% production cut for the dealers to focus on the inventory adjustment.

With the price hike, the dealers started to find timing to increase the reselling price to 70,000 yen per tonne level while the current price is less than 70,000 yen for some transactions. Some of the dealers decided to realize more than 70,000 yen of reselling price in the year to secure the profitability while the attempt could be step by step under the slow demand.