Japanese electric furnace steel makers apparently settled the price of electrode for electric furnace at more than 550,000 yen per tonne for fiscal 2010, which is near 100,000 yen lower than fiscal 2009. The electric furnace steel makers’ operation rate is very low especially for carbon steel makers due to slow demand for construction. The electric furnace steel makers sought much lower price than fiscal 2009. The electrode makers accepted the lower price with lower needle coke cost while some electric furnace steels keep the talks.
The domestic electrode price reached more than 650,000 yen per tonne for fiscal 2009 compared with the bottom of 270,000 yen for fiscal 2002 and more than 650,000 yen for fiscal 2009 due to higher needle coke cost. The electrode price is pressured by the buyers when the crude oil price decreased under slow worldwide economy. The export price is peaking at FOB US$ more than US$ 5,500 per tonne. The price recovers from the bottom when steel makers in East Asia, Southeast Asia, Middle East and Europe increase the electric furnace operations. The Japanese makers decided to increase the price for new order.Japan Steel Scrap Composite Prices (Sangyo Press)
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