Japan Steel Makers Raises Steel Sheet Price to Electronics Makers

Japanese integrated steel makers will conclude the steel sheet price negotiation with Japanese electric appliance makers to increase by 15,000 yen per tonne from October shipping. They increased the selling price by 20,000-25,000 yen per tonne in April shipping. Some makers raise the price by 10,000 yen in October shipping and by 5,000 yen for the shipping in January 2009.

They started the price negotiation for hot-rolled, cold-rolled, electric galvanized and hot-dip galvanized steel sheet from the last half of July when iron ore or fuel price increased beyond all expectations in April and they can’t absorb the cost increasing by their cost reduction.

Electronics makers resisted against the steel makers’ price hike when it is hard electronics makers pass the increased purchase price on the selling price due to sales competition, and Asian steel market price is falling sharply.

However, electronics makers are starting accepting the steel makers’ price hike when the electronics makers take a precedence stable purchasing. The purchasing of high-grade steel sheet is difficult when steel makers are less to be able to produce high-grade steel sheet. Steel makers already concluded the price negotiation with Japanese electronics makers in Asia to increase by total US$ 400 per tonne after April.

Nippon Steel and some makers are continuing the cost reduction and are accelerating to use steel products effectively cooperation with electronics makers.