Japanese integrated steel makers are starting kicking in price negotiation for export steel sheet with Japanese electric appliance makers in Asia for the shipping in July-December. Steel makers are requiring to raise the steel sheet price by around US$ 100 per tonne from April-June. Electric appliance makers are resisting the price hike, but are starting to hear the price hike when Asian major steel makers such as Bao Steel launched out the price hike of steel sheet by over US$ 100 for the shipping in July or August.
Steel makers’ sheet export price increased by US$ 400 per tonne for Japanese electric appliance makers in Asia in the first half of 2008 when sheet market price rose rapidly due to higher material price while the sheet price decreased by over US$ 400 in the last half of 2008. After the last half of May, Asian sheet market price jumped back. Consequently, Bao Steel, Wuhan Iron and Steel or China Steel announced the price hike. Japanese electric appliance makers’ output is rebounding in China thanks to Chinese government’s business stimulating measures. The appliance makers’ output of office automation equipment reduction changed to about 30% in present day from 70% in January-March.Japan Steel Scrap Composite Prices (Sangyo Press)
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