Nippon Steel to Hike Plate by 10% for Bridge Fabricators

Nippon Steel apparently agreed with major bridge fabricators to increase the plate selling price by around 10% for October order. The firm increases the price for the first time since April 2005. The firm also increases the extra charge by 10,000 yen for weatherproof grade and by 15% for primer grade products. Domestic plate price for bridge was flat partly due to temporally demand drop after bid rigging scandal. The plate supply gets tighter in 2007 and the price gap between bridge and other applications gets wider. Nippon Steel started the negotiation with major bridge fabricators since August after reject by the users in April. Nippon Steel argued the very tight rolling schedule for plate mills especially for October-March period. The users, which expect the bridge steel demand will increase by around 30% in October-March from April-September, accepted the hike to secure the material.Nippon Steel is also in negotiation with major shipbuilders and other users for higher price to cover higher cost for raw materials and freight under tight shipbuilding plate supply internationally. The firm tries to increase the selling price again in and after 2008 when the firm expects the plate supply keeps tight for a while.