JFE Steel to Raise Steel Plate Price for Shipbuilding

JFE Steel started export price negotiation with South Korean shipbuilders to raise steel plate for shipment in October 2007-March 2008. JFE Steel is seemed to presence increasing by US$ 40-50 compared with the first half of fiscal 2007 at the ended of March 2008 considered to worldwide tight supply and demand, the market price and stable trade. South Korean shipbuilders express disapproval. The negotiation is expected to begin in earnest from now.Steel plate supply and demand keeps tight situation due to increased production of shipbuilding and construction machinery, and the expanding of energy demand. JFE Steel raised the selling price by about US$ 20 to FOB US$ 630 for the shipping in April-September 2007. Some concern pointed out that each South Korean shipbuilder is ordering it to Japanese integrated steel makers in additionally after the price negotiation in the first half of fiscal 2007 from the influence of Chinese export restricts measures.JFE Steel has no enough ability to produce when the firm’s shipment is increased for overseas base of Japanese shipbuilders in addition to good domestic demand. The firm judged to need more price hike for steadily supply.However, many South Korean shipbuilders are resisting to this price hike when other Japanese steel makers don’t change the selling price, and other material price is increasing though South Korean shipbuilders recognized tight supply and demand.