Nippon Steel Increases Steel Plate Price for Shipbuilding

Nippon Steel Corporation, Japanese largest steel maker, agreed with domestic shipbuilders to raise steel plate selling price by about 10% including extra charge for high tension products effective for contracts in October 2007. Steel plate price for Japanese shipbuilders is cheaper than international market price. Nippon Steel had offered the price hike against domestic shipbuilders since July 2007. The shipbuilders approved Nippon Steel’s offer price since the shipbuilders’ profitability improved thanks to the upsurge of tonnage value.Japanese domestic steel plate demand was about 2.3 million tonnes for shipbuilding during April-September 2007. Nippon Steel expects the demand would be the same level in the second half of fiscal 2007 and the annual demand would increase to about 4.7 million tonnes through fiscal 2007, up by 400,000 tonnes from fiscal 2006.Steel plate demand is expected to keep increasing for shipbuilding, construction machine, industrial machine and energy industry. The supply would become even tighter than present since the demand grows up rather than makers’ output expansion.Nippon Steel prospected domestic and international steel plate price would increase widely in fiscal 2008 to reflect the upsurge of material and fuel costs.The firm indicated the next price hike for domestic shipbuilders in fiscal 2008 because the selling price is still lower than international price.The firm finished the price hike negotiations of steel plate used for bridges, steel frames and wholesalers effective for shipment in the last half of F2007, while under the negotiation with construction and industrial machine makers.