Nippon Steel to Hike Special Steel Bar, Wire by More Than 30,000 yen/t

Nippon Steel increases the selling price of special steel bar and wire rod by more than 30,000 yen per tonne for April retroactively. The firm tries to increase the price by around 40% through negotiations with manufacturers and processors. The firm already offered more than 20,000 yen hike at negotiation from February adding 10,000 yen after jump of coking coal price and ferrous scrap. The firm increases the price for the items including mechanical steel, bearing steel, cold heading wire, high tension volt, steel code, prestressed concrete wire, welding materials and wire rope. The firm expects the demand increases by around 3-5% for fiscal 2008 started April when the users including automakers expand the output at home and abroad. The supply is very tight despite of the full capacity operations at Muroran, Kamaishi, Kimitsu and NS Steel Bar & Wire. The firm decided the wide hike to keep stable supply with better profitability when the price is relative lower than international level.