Nippon Steel Raises Plate Price for Japanese Shipbuilders by 30,000 y/t

Nippon Steel concluded the price negotiation of steel pate for shipbuilding to increase by 30,000 yen per tonne with Japanese shipbuilders. The firm increased by 20,000 yen per tonne in April and by 10,000 yen in July due to significantly tight supply and rising material and fuel prices. Shipbuilders took up the price hike for stable supply of steel plate when the supply shortage is assuming serious proportions. Japanese shipbuilders are expanding building capacity thanks to strong marine market in the world. The demand for plate for shipbuilding increased to about 4.4 million tonnes in fiscal 2006 at the ended of March 2007, to about 4.7 million tonnes, which is expected to increase to over 5 million tonnes. Delivery lead time to shipbuilders is being longer by 10-15 days when the supply and demand is tightening rapidly. Some shipbuilders are holding building schedule up due to short steel plate. Nippon Steel will raise plate price for other users. The firm increase productive unit by concentration of steel plate spec, which improves productive performance. Moreover, the firm will reduce shipbuilding cost in cooperation with shipbuilders.