|  | 24/08/2004 |
|
Electric Charge Increases Because of Rise of Oil Price
Following the rise of oil price, electric furnace steel makers worry about the rise of electric charge. There have been rises of the charge in some of the makers. The price of ferrous scrap as the main raw material has had its reactionary fall since the middle of August. But according to some of the makers, ferrous scrap price will be above 30,000 yen per tonne since China's purchase of the scrap starts in September. Each electric furnace steel maker has the hard managerial conditions due to sharp rise of the costs. So the makers will perform further price hikes of their products.
The oil market in New York Mercantile Exchange rose from $35 per barrel in June, the bottom price, and $49.40 per barrel, the highest price in the recent years was reached last week because of problems in the Middle East, hardship of management of the Russian oil giant, and increase of the oil demand in China, etc. According to the industry of dealing in futures, the market will be declining from September 15, when OPEC General Meeting will be held, to $35 at which the price hit the bottom. Instead, there is some possibility that the market will reach over $50 per barrel. The market, which is 20-dollar-mark per barrel under normal condition, is more likely to be on the rise.
The domestic electric charge is rising following the rise of oil price. Though the contract of payment of the charge differs from each electric furnace steel maker, there is no doubt about increase of the costs for the maker. According to Tokyo Steel Manufacturing, since there would be the rise of the electric charge, it would be a worry for each maker. Moreover, a thin product maker in the Kanto area around Tokyo says the kerosene price of September's contract rose following the rise of the oil price.
They say that the ferrous scrap market will rally. In the Kanto area, the market price rose 28,000 yen per tonne in the beginning of August from 17,000 yen per tonne in June at the bottom. From the middle of this month, the market declined to 25,000 yen per tonne. It is fluctuating violently. According to the thin product maker, after China's buying ferrous scrap will start in the middle of September, the market price is hitting the mark at 20,000-yen-mark per tonne and rising further to 35,000 yen per tonne.
The small steel bar electric furnace steel makers in the area are planning to perform price hikes of their retail prices to 65,000 yen this fall from current 60,000 yen dealing with rally of ferrous scrap price. The periodical negotiations with major general conductors in the end of this month will hopefully come to an end with the selling price at 59,000-60,000 yen per tonne, increasing by 2,000 yen from the previous negotiations for the makers. Thus, the market is likely to rise to 62,000 yen per tonne. Recovery of the selling price and market can deal with the rises of fuel and raw materials for the makers, and they will continue the recovery to structure their stable management.
 |
 
 | Electric Charge Increases Because of Rise of Oil Price
| | Japanese Steel Pipe Maker to Raise Selling Price
| | Major Distributors of Steel Pipes Raise Prices of General Structural Pipe and Steel Gas Pipe by 5,000 yen per Tonne
| | Ferrous Scrap Market around Tokyo may turn to Increase Again
| | Cold rolled steel sheet is strong tone at 69,000-70,000 yen
|
|
|
 |
