Suzuki Metal to Hike Steel Wire Products by up to 40,000 yen/t

Tokyo based major steel wire processor, Suzuki Metal Industry said on Tuesday the firm increases the selling price of steel wire products by 28,000-40,000 yen per tonne for April 1 shipment. The firm tries to pass higher cost price when Nippon Steel increases the material of wire rod price by more than 20,000 yen. Suzuki Metal decided to accept the higher rod price to keep stable supply with strong demand for automobile, which represents around 60% of the applications, and for construction machinery. The firm said the more than 20,000 yen per tonne hike is the widest in the history. The firm increases the products price for the first time since July 2007. The firm increase the price by 28,000 yen for hard drawn steel wire, by 30,000 yen for piano wire, by 35,000 yen for oil tempered steel wire and by 40,000 yen for ultra high tensile oil tempered wire. The firm tries to cover higher cost for freight and subsidiary materials along with wire rod. The firm said the wire rod inventory is much lower than normal level. The firm tries to secure the high quality wire rod to make wire products for critical safety parts of automobile when automobile demand is expected to keep strong in fiscal 2008. The firm will offer 40,000 yen per tonne of wide hike for high tensile oil tempered steel wire, which is used for valve spring and clutch, to cover higher cost to meet demand for higher tensile and thinner diameter products from automakers.