Nippon Steel to Hike NO Electrical Steel Export by US$ 200/t

Nippon Steel started to offer around US$ 200 per tonne of price hike for non-oriented electrical steel export to Asian buyers other than Japanese transplants for April shipment from March shipment. Baoshan Iron and Steel increased the price by 450 yuan per tonne for March shipment and Chinese market price increases while iron ore and coking coal price is expected to increase widely for fiscal 2010 starting April.

Asian non-oriented electrical steel demand is firm when Chinese automobile and appliances demand grows and Southeast Asian economy recovers. Chinese distributors’ inventory is said to be as low as around 1.5 months while the steel makers’ rolling schedule is tight.

Nippon Steel increased the export price step by step since July 2009 to regain the plunge after Lehman Shock and the price increased by total US$ 300 to more than FOB US$ 800 per tonne. Other Asian steel makers also increase the export price to China. Baosteel apparently took chance to raise the domestic price under the rising import price while the firm left the price unchanged for February.