Japan Major Steels Eye Domestic Sheet Price Hike

Japanese integrated steel makers started to study for price hike for hot, cold and coated flat steel. They consider the market would support the hike under tight supply along with the higher raw materials cost. They eye 3,000-5,000 yen per tonne of hike for April under the study. The sheet steel domestic supply balance is getting tighter under firm demand for manufacturers, mainly for automakers. The major indicator of domestic inventory of hot, cold and coated sheet keeps less than normal level of 4 million tonnes when the stock was 3.889 million tonnes in December, 3.809 million tonnes in November and 3.98 million tonnes in October 2006. The makers’ cost increases with higher price for zinc, iron ore and other materials. Chinese sheet market price, which impacts on Japanese market, increased by US$ 30-50 per tonne in the year and Chinese makers increased the selling price one after another. Japanese domestic market price is lower than the international price level. The domestic demand is expected to keep firm for first half of fiscal 2007 starting April. Domestic integrated steels try to increase the selling price under the tight supply balance.