Nippon Steel and JFE Steel Set Tin Plate Price Unchanged

Nippon Steel and JFE Steel will set their selling prices of tin plate products unchanged. The 2 integrated steel makers raised the selling price by 20,000 yen per tonne effective for April shipment. After this hike, raw material prices didn’t change largely. The 2 integrated steels refrain from price fluctuation in a short term when both tin plate suppliers and users are willing to keep stable price and supply volume.

Nippon Steel and JFE Steel agreed with BHP Billion Mitsubishi Alliance in price down of high grade coking coal by 7% for October-December shipment against July-September shipment. Iron ore price is also likely to lower by 10-15% for October-December shipment compared with July-September shipment. Meanwhile, both coking coal and iron ore prices will be higher than April-June shipment.

Nippon Steel and JFE Steel regard current raw material prices are almost within the range estimated at the timing of latest tin plate price hike. Thus they set the selling price unchanged.

The 2 integrated steel makers agreed with can makers in price hike by 20,000 yen for April shipment to put high material cost at once and keep the price level within fiscal 2010 ending in March 2011. They also agreed in price adjustment in the case of wide fluctuation of raw material costs.

Can makers have promoted price hike of can products. An official of 18-litter can maker said can price is difficult to be raised rapidly even though tin plate price surges in a short term. Nippon Steel and JFE Steel seem to refrain from frequent price change since rough price fluctuation of tin plate impacts can makers’ profitability.