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Iron and Steel News03/08/2004

Price Increase Negotiation of Steel plate for Shipbuilding to Get into Stride.
Re-price increase negotiation of the steel plate for major company shipbuilding by the Japanese blast furnace maker got into stride. It is that the hike from October production. Although each blast furnace makers has not clarified details for individual negotiation, it is expected that the selling price increase is about an average of 5,000 yen per tonne.

Domestic steel plate makers is racking their brains for doing supply responsibility against the background of demand full of shipbuilding etc., continuing full production. On the other hand, the spread of the steel plate makers selling price in South Korea or China toward Japanese price was expanded. For a certain reason of cost rising, such as materials, makers judged that price correction for the second time is indispensable. Steel makers continues negotiation of a price increase aiming at an international level since the 2005 fiscal year. The steel plate price increase negotiation for major company shipbuilding becomes the 3rd time in this time following the last fiscal year and April in this year. By the negotiation by April in this year, the blast furnace makers aimed at correction of the caved-in price, combined it with explanation of the supply-and-demand situation which is tight, and has negotiated continuously. However, the before price increase by steel makers has not woven in parts for a cost rise, such as materials, and negotiation is protracted. In the meantime, the gap with the international price and the price for domestic distributors is expanded rather. The international price for shipbuilding rises at the pace exceeding those for domestic. The export price (FOB) for China exceeds at 600 dollars per tonne, and also about for South Korea, the blast furnace makers are continuing the negotiation for it towards price raising more than equivalent. The shipbuilding country demand, Japan, South Korea or China is still more nearly historical high level. In additionally, each demand of steel plate for the energy relation, the construction machine, industry machine and each field may come out favorably, the supply and demand in Asia have been tight.

The domestic market price for distributors, since the year before last, the market jumped by 20,000 yen per tonne or more, and the vigor of a price boost is continuing.

Today's Japan Metal Bulletin E-mail
Price Increase Negotiation of Steel plate for Shipbuilding to Get into Stride.
Kobe Steel Seeks Another Price Hike for Auto Bar and Wire
Special steel output to increase to 4.9 million tonnes in July-September
Nippon Steel to Renew CGLs at Kimitsu and Nagoya
Rebar Price Increases to 59,000 yen in Tokyo

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No reproduction or republication without written permission.