Japanese Steel Sheet Makers Start Price Hike to Appliance Makers

Japanese integrated steel makers started the export price negotiation of steel sheet to Asia with Japanese electric appliance makers for the shipping in July-December. They are exchanging views for the market price or electric appliance’s production. Steel makers will raise the export price by a few dollars due to rising steel sheet market price in Asia.

Japanese appliance makers are expected to resist the price hike of steel sheet when appliance makers take precedence the improvement of the profit and their production isn’t recover yet. There is possible steel sheet export price hits the bottom and rebounds.

The export price of steel sheet rose by US$ 400 per tonne to Asia in the first half of fiscal 2009 due to rising Asian steel market price, but dropped by over US$ 400 in the last half of fiscal 2009.

Asia sheet market price is rebounding in June. Asian major steel makers, Bao Steel or China Steel launched the price hike. The demand for appliance is increasing by Chinese government’s stimulating measures in South China. Spot export price of Japanese steel sheet is rising by a few dollars.

On the other hand, Japanese appliance makers’ sales hasn’t recovery. Major appliance makers’ consolidated net profit was the red in the business year ending in March. Consequently, they are resisting the price hike of the material.