Aichi Steel to Hike Special Steel by 20,000 yen/t

Aichi Steel announced on Friday the firm increases the selling price by around 20,000 yen per tonne for all special steel items including structural steel, spring steel and bearing steel both for contract buyers and distributors for April shipment. Japanese steel supply is expected to keep tight for fiscal 2008 with strong demand for automobile and construction machinery since last year. The special steel makers are suffered from higher cost for raw materials including ferrous scrap and ferroalloy, price of which surged more than expected. The steel makers try to improve the productivity and yield in order to cover the higher cost and to keep stable supply. However, Aichi Steel decided the hike to cover some of the higher cost when the firm cannot cover the higher cost for itself. The firm offers higher extra charge for heat treatment and grades to individual buyers to cover higher energy cost. The fir indicates additional hike depending on cost factors including price of ferrous scrap.