Japan Major Steels to Hike Sheet Steel by 15,000 yen/t for Dealers

Japanese integrated steel makers are finalizing the price hike plans for hot, cold and coated sheet steel for distributors effective in April. The makers still evaluate the price when annual iron ore and coking coal price is to be decided. However, they eye around 15,000 yen per tonne level of price hike. They will notice the hike to the distributors as early as next week.

Price of iron ore and coking coal is expected to increase when spot price reaches US$ 120 per tonne for iron ore and near US$ 200 for coking coal, which is 60-90% higher than annual contract prices by Japanese makers for fiscal 2009. The miners seek wide hike. Japanese steel makers resist the wide hike but the makers prepare for higher the raw materials cost.

Worldwide steel makers increased the steel price under better demand condition along with expectation for higher raw materials cost. Japanese steel makers also increase the steel export price. Japanese makers will increase the steel price for domestic market.

Japanese sheet steel supply keeps tight. The processors’ hot, cold and coated sheet inventory is less than 1 month for the shipment at end of December, according to Japan Coil Center Association. The dealers’ market price is expected to increase when Tokyo Steel Manufacturing increased the price by 3,000 yen per tonne for February.