JFE Steel to Hike Cold, Coated Steel by US$ 30/t

JFE Steel said the firm agreed with coil centers and appliances makers in China and Southeast Asia to increase the export price of sheet steel by US$ 30 per tonne for July-September shipment compared with April-June. The firm increases the price for cold rolled steel, coated steel including hot dip galvanizing and electro-galvanizing steel and non-oriented electrical steel. The firm succeeded the hike for 6 quarters in a row for cold and coated steel and 5 quarters in a row for electrical steel. The flat steel demand is strong for appliances including air conditioner and washing machine in Asia, especially in China. The demand is also firm for flat panel television and office automation machine expanding demand for motor and motor core. The higher demand increases the order to JFE Steel, especially for high grade items. The firm expects the high grade items market keeps tight supply for a while. The firm keeps negotiating with offshore plants of Japanese appliances makers to increase the export price and expects to conclude the talks soon. The buyers also show sign to accept certain hike under tight supply for the high grade flat steel and higher raw materials cost. JFE Steel also has negotiation with appliances makers to increase the shipping price for domestic plants.