Kobe Steel to Raise Welding Materials by 15%

Kobe Steel’s welding business unit announced on Thursday the unit increases the selling price of welding material items for shipbuilding, automobiles and construction machineries by 15% for shipment on and after April 1. Kobe Steel raises welding material prices for the first time since April 2005. Kobe Steel aims to pass increasing fuel costs on the selling prices and to improve the prices for the 3 demand fields, where the prices are lower than other demand fields.Kobe Steel will raise the selling prices of flux-cored wire, solid wire, welding rod and submerged ac welding shipped for the users in 3 major demand fields; shipbuilding, automobile and construction machinery.The firm raised the selling prices of welding materials for all users by 10% in April 2004 and by 20% in April 2005 to reflect higher material costs such for wire rod and steel sheet. However, the hike was behind for shipbuilding, automobile and construction machinery compared with the other users.Cost prices continued surging after previous price hike in April 2005 for materials including wire rod, steel sheet and copper or packaging and distribution costs. Profitability became worse especially for flux-cored wire and solid wire.Welding material demand is increasing when shipbuilders, automakers and construction machinery makers are expanding their outputs. Kobe Steel is increasing capital expenditure for renewal of old facilities and output expansion to meet strong demand and keep stable supply of welding materials.Under the situation, Kobe Steel decided the price improvement especially for major users.