JFE Steel Raises Special Steel Bar and Wire Rod Price in October

JFE Steel announced on Thursday the firm plans to raise selling price of special steel bar and wire rod by over 10,000 yen per tonne for October shipment. The firm started to offer price hike to all users. The firm has raised the selling price by total over 30,000 yen per tonne in the first half of fiscal 2008 ending March 2009. However, the firm decided another hike when iron ore price and alloy price are increasing. The firm’s supply capacity can’t catch up with the demand when the demand for special steel bar and wire rod maintains strong from construction machinery or energy industry. The firm expects the demand keeps steady in the first half of fiscal 2009 and judged to need the improvement of profitability for special steel bar and wire rod for stable supply. The firm agreed increasing special steel bar and wire rod export price by over US$150 per tonne with some users for the shipping in January-March 2009 from October-December 2008. The firm has raised the export price by total over US$400 per tonne until the shipping in October-December. The demand at overseas keeps firm mainly for large diameter steel bar from energy industry or bearing steel. Users take up JFE Steel’ price hike for the shipping in January-March 2009 when users take precedence stable purchasing of steel bar.