Slow Construction Demand could Delay Sheet Steel Price Rise

Japanese construction sheet steel interests concern coming price hike for colored galvanizing steel and galvalume in July under slow demand due to slow building activity and rainy season. Some dealers anticipate they couldn’t pass the higher cost price until September. Construction sheet rerollers increased the selling price by around 30,000 yen per tonne for the products in April to cover more than 20,000 yen higher hot rolled coil cost. The dealers managed to pass the higher cost price on the reselling price by mid-May. However, the dealers concern the effort to pass the additional cost price could take more time when their shipment is around 20% lower than a year earlier level. The construction sheet steel rerollers are suffered from slower demand. Nippon Steel & Sumikin Coated Sheet Corporation posted 35.5% lower recurring profit and JFE Galvanizing & Coating posted 6.3% lower the profit for the year ended March 2008 from previous year. The makers and dealers try to pass wide cost up on the downstream players under slow demand.