Osaka Market Accepts Electric Furnace Steels’ Price Hike

Electric furnace steel makers around Osaka succeeded to be accepted the higher selling price by the market after their price hike announcement for September order. The makers try to improve the profitability to cover higher ferrous scrap cost through late August. However, recent scrap price drop could impact on the effort. The steel makers are expected to keep the price for October order.

Scrap market price increased from mid-August to late August. Electric furnace steel makers around Osaka increased the scrap purchase price by 4,000-5,000 yen per tonne in August. The makers’ profit was squeezed by the higher cost in August after the improved profitability in July. Especially, many local small bar makers apparently posted loss in August.

Tokyo Steel Manufacturing increased the selling price for all items for September. The firm increased the price by 3,000 yen per tonne for shapes, by 2,000 yen for flat steel and by 1,000 yen for concrete reinforcing steel bar. Other makers welcomed the price hike especially for shapes while other rebar makers expected wider hike by Tokyo Steel. Other steel makers announced price hike one after another for September.

Yamato Steel increased the price by 3,000 yen per tonne for H-beam effective on September 4 shipment and for channel and I-beam for September order. Sumikin Steel & Shapes increased the H-beam price by 3,000 yen for September order and Osaka Steel increased the angle and channel price by 3,000 yen for September order for the dealers.

Kyoei Steel increased the rebar selling price by 5,000 yen per tonne for September at all plants. Other rebar makers around Osaka also announced such price hike to realize more than 60,000 yen per tonne of selling price.

Those price hikes were accepted by the makers despite of the slow demand. However, the makers try to find timing for another price hike when their profitability is still severe. They couldn’t increase the selling price for October when scrap price decreases in September. The makers would try to increase the price in and after November while they would keep the price in October.