Kansai Shindo Kogyo to Raise Rolling Charge for Brass Pipe

Osaka based brass base pipe maker, Kansai Shindo Kogyo will raise the rolling charge for its all products by 30-50 yen per kilogram for orders received in and after September. The firm decided the hike when the firm cannot absorb the cost expansion to procure brass scrap, the main material for brass pipe, even with the inner cost cut and inventory reduction.The official of Kansai Shindo Kogyo said that Japanese copper and brass scrap with high purity, used for brass pipe, had flown out to Chinese market since the beginning of 2006 where the copper scrap price was higher than Japan and that the firm must add the premium onto the market price in order to purchase brass scrap. The firm is also suffered from other cost expansions when the output loss has increased in value due to the surging copper market and other material costs have expanded thanks to the high crude oil price.The selling price of brass base pipe basically fluctuates along Japanese official copper and zinc ingot prices and the rolling charge is added on it by product sizes. Japanese brass pipe makers must have decreased their rolling charges so far under the low demand for construction materials. Kansai Shindo Kogyo aims to recover the previous charge reduction at some range by the hike of this time.Kansai Shindo Kogyo is Japanese top maker of brass base pipe and free-cutting brass base pipe, whose output capacity is 300 tonnes per month and current production is 200-230 tonnes.