Yodogawa Steel to Add 5,000 yen/t of Zinc Extra for Galvanizing Steel

Osaka based sheet steel reroller, Yodogawa Steel Works announced on Thursday the firm will add 5,000 yen per tonne on domestic selling price for hot-dip galvanizing steel to cover higher zinc cost. The firm started notice to distributors and customers to apply the new price system for January shipment when zinc price increases more than expected. The firm tries to add zinc extra on the selling price for the first time for the firm. The attempt is rare in the industry with zinc burden. The firm will change the 5,000 yen per tonne of extra upward or downward depending on zinc price. The firm excludes galvalume and colored galvanizing steel for the extra and the firm already reflects the change of zinc price for export price since the spring of 2006. The firm increased the selling price of galvanizing steel and colored galvanizing steel by more than 10,000 yen per tonne both for distributors and contract users in July. The firm increased the price based on 300,000 yen per tonne level of domestic official zinc ingot price. However, zinc price increased to more than 500,000 yen per tonne in late October after the price increased from more than 400,000 yen in the spring. The higher zinc price suffers the profitability for the firm.