Japanese integrated steel makers started to study for sheet steel price hike for fiscal 2010 starting April. They started to explain supply and price conditions of East Asian steel market and global raw materials market to contract users including automakers and appliance makers while the steel makers will offer price hike depending on price negotiation for iron ore and coking coal. Some steel makers offer several thousands yen of hike for over rolled sheet steel to the distributors at monthly price revision.
Japanese steel makers are cautious for potential margin squeeze when iron ore and coking coal spot price increases widely and the raw materials cost is expected to increase. Tokyo Steel Manufacturing already increased the selling price by 3,000 yen per tonne for distributors for February order. Chinese steel makers increased the export price to Japanese buyers. Japanese integrated steel makers got higher export price at US$ 600 per tonne for hot rolled coil, US$ 700 for cold coil and US$ 800 for coated steel. Some Japanese integrated steel makers decided to increase the selling price of market sensitive over roll sheet steel when the price is lower than the export price and Japanese import price. They try to increase the sheet steel market price preparing for higher price level for fiscal 2010. The major Japanese steel makers are expected to increase the sheet steel price for other application and other users. Japanese sheet steel market price is increasing but the pace is slow due to very slow construction market.Japan Steel Scrap Composite Prices (Sangyo Press)
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