Japan Special Steel Makers Raise Selling Prices in April

Daido Steel announced on Tuesday the firm will raise the selling price by 8-12% for tool steel products containing over 1% nickel effective for shipment in April, when nickel price at London Metal Exchange keeps increasing. The hike covers steels used for metal mold for plastic and hot rolling. The firm previously raised the selling price of nickel containing tool steel in June 2006. Aichi Steel also announced on Tuesday the firm raises the selling price of special steel products including structural steel, spring steel and ball-bearing steel by more than 10,000 yen per tonne against distributors and large contract users from shipment in April. Aichi Steel raises the selling price for the first time in 2 years. LME nickel spot price hit US$ 18.8 per pound on Monday, up by about US$ 5 from the monthly average in August 2006. Daido Steel and Aichi Steel aim to pass the increased nickel price on the selling prices, which was average US$ 16 for November 2006-January 2006. Daido Steel would raise tool steel price again if nickel price rises more. Aichi Steel will offer price hike against all users including automakers for better re-productivity by about 10% or over 10,000 yen per tonne. Special steel demand keeps strong for automobile, car components and construction machinery. On the other hand, cost price for ferrous scrap, the main material of special steel, expands and is expected to keep high level. Costs are also increasing for refractory, electrode, energy and freight. Special steel makers can’t absorb cost expansion by themselves.