Daido Steel announced on Monday the firm increases the selling price of tool steel products by 5-10% for domestic dealers and contract users and export for October shipment to cover higher cost for raw materials including ferrous scrap and chrome. The firm tries to improve the profitability to cover higher raw materials cost when scrap price is still 2.5 times higher than 2006 level and 1.7 times higher than 2007 despite of the recent drop under slower export to South Korea and seasonal maintenance outage by local electric furnace steel makers.
The hike is third increase for the firm after April and July shipment. The hike covers all tool steel products. The firm argues the ferrous scrap price is still high and the firm needs higher price to keep stable supply along with better products development and better quality. The firm eyes additional hike depending on the market and cost factors.M | T | W | T | F | S | S |
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Japan Steel Scrap Composite Prices (Sangyo Press)
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