Nippon Steel Raises H-beam Price by 5000 y/t in September

Nippon Steel is expected to raise H-beam selling price by 5,000 yen per tonne for dealers’ September orders. This is the firm’s first H-beam price hike since July 2008. The firm will announce the price hike to dealers next week. The firm decided the hike when Tokyo Steel Manufacturing announced to raise H-beam price on Tuesday. H-beam price is likely to keep uptrend thanks to rising overseas H-beam market price.

H-beam market price stays flat at 68,000-70,000 yen per tonne around Tokyo. Dealers hurry to pass high purchase price on reselling price to reflect the hike by Tokyo Steel Manufacturing and Nippon Steel. Japanese H-beam demand decreased by 30% for April-June from the same period of last year, which is expected to keep low level for October-December. Meanwhile, international market price is rising. Japanese export price reached FOB US$ 650 per tonne thanks to strong demand in China. Japanese market price is forecasted to rise step by step.

Nippon Steel reduced the selling price by 40,000 yen per tonne for February orders and by 13,000 yen for July orders due to dropped demand. The firm raised the selling price by total 45,000 yen per tonne for February-July 2008 to reflect high material cost. The firm has reduced the price more than 45,000 yen since February 2009. H-beam price down range was wider than other steel products. Plate price lowered by 15,000-20,000 yen per tonne for dealers.

Ferrous scrap supply may shorten and iron ore price may surge thanks to extending overseas demand. Nippon Steel is expected to continue to raise the selling price.