Nippon Steel Hikes H-Beam by 15,000 yen/t

Nippon Steel announced on Thursday the firm increases the selling price of H-beam by 15,000 yen per tonne or near 15% for distributors for July order. The firm increased the price by total 45,000 yen. The firm tries to cover higher cost for iron ore, ferroalloy, ferrous scrap and ocean freight through the first hike in 3 months. Other makers could follow the move. Nippon Steel also announced on the day H-beam inventory held by members of Tokiwa-kai, which is group of distributors dealing Nippon Steel’s products, increased by 7.9% to 236,000 tonnes at end of June from May, which increased for 2 months in a row. The stock for shipment increased to 1.95 months from 1.87 months in May. The firm sees lower demand and higher supply increased the stock level. The inventory increased by 6% to 118,000 tonnes in Tokyo, Osaka and Nagoya at end of June from May. The dealers experienced slower demand after speculative purchase in January-March by buyers with expectation for higher price. Nippon Steel’s price hike encourages other makers’ similar move when the cumulative price hike is 37,000 yen for JFE Steel and 35,000 yen for Sumitomo Metal Industries in the year while Tokyo Steel Manufacturing already increased the price by 48,000 yen.