Daido Steel offers additional 10,000 yen per tonne of special steel hike for shipment in October to cover higher raw materials cost, especially for ferrous scrap. The firm already increased the price by total 35,000 yen per tonne including April hike and July hike.The firm is preparing for another hike in 3 months cycle to cover higher raw materials cost. The firm also increases the extra charge by 3,000 yen per tonne for chrome steel items and by 4,000 yen for bearing steel when ferrochrome jumped to 2.3 times from 2006 level and to 1.8 times from 2007 level. The firm would increase the price by 13,000-14,000 yen for such items including base price hike. The firm also negotiates with the users for potential mechanism to reflect price change of scrap and the users show understanding for the situation. However, the users tend to prefer extra charge adjustment to such surcharge.
Japan Steel Scrap Composite Prices (Sangyo Press)
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