Kobe Steel Raises Plate Price by US$ 270/t for South Korean Shipbuilders

Kobe Steel agreed with South Korean shipbuilders to raise steel plate price by about US$ 270 to FOB US$ 900 per tonne for April-September shipment versus contracts for fiscal 2007 ending March 2008. The firm committed half-year contracts for April-September 2008 when foreign exchange rate of yen is likely to fluctuate roughly, though the firm committed one-year contracts in fiscal 2007. At the same time, the firm gained extra charge mainly for high-tensile plate at about US$ 40 per tonne.Demand for steel plate keeps strong to apply to shipbuilding, construction machinery, industrial machinery or energy industry. Japanese integrated steel maker source said deficient plate capacity would exceed 1 million tonnes per year against the demand in Japan.South Korean shipbuilders hold order backlogs for 4-5 years and expanded their capacities. They are expected to increase plate purchase volume by about 1 million tonnes in fiscal 2008 compared with fiscal 2007. South Korean shipbuilders were likely to take precedence on stable procurement against Kobe Steel’s price hike.Kobe Steel will also offer price hike of special wire rod, including cold header products, spring or tire code, by US$ 200 per tonne for April-June shipment compared with January-March against all users at home and overseas. Demand for special wire rod is steady applied into automobiles or construction machineries. The firm aims to pass increasing material costs on the price.