JFE Steel to Hike Plate Steel by 10,000 yen/t for Dealers

JFE Steel increases the selling price of plate steel by 10,000 yen per tonne for distributors for September order or October production. The firm already started the notice for the buyers since late August. The firm indicates the supply volume to distributors could decrease in and after October compared with April-September period when the firm adjusts the shipment depending on demand and market conditions. The firm increases the price by total 40,000 yen per tonne in the year after 20,000 yen hike for April production and 10,000 yen for July production. The firm decided the additional hike when the domestic price is much lower than surging international price under tight supply along with the extremely high cost for iron ore, coal and raw materials. Nippon Steel already increased the price for distributors by 10,000 yen for August order. The plate demand is strong for shipbuilding and construction machinery. Japanese steel makers’ order receipt for plate increased by 8.3% to 2.712 million tonnes in April-June from same period of 2007, according to Japan Iron and Steel Federation. The makers try to meet the strong demand by full capacity operations but they have limited resource to increase the shipment. JFE Steel tries to expand the plate output capacity by adding reheat furnace at Fukuyama area of West Japan works. However, the output in October 2008-March 2009 would be in line with April-September 2008. The firm expects the output will be same level for fiscal 2008 ending March 2009 as around 5.7 million tonnes in slab volume in fiscal 2007. JFE Steel is requested for more plate supply by shipbuilders and construction machinery makers in and after October. The firm decided the additional price hike for distributors to secure resources when the supply could get tighter.