Nippon Steel to Hike Structural Steels

Nippon Steel aims price hike of steel products for building materials. The market is slightly improving. The firm will raise the selling price of H-beam, pressed square steel, steel pipe pile, steel pipe sheet pile and sheet pile. Tokyo Steel Manufacturing and Yamato Steel already launched out price hike of H-beam for general contractors.

The firm judged to need price improvement early when the market price lowered for building materials under tough order receipt competitions. Because the market price dropped for steel products, steel makers, dealers and fabricators accepted the orders in deficit. The firm will pull up processing charge of steel frame by the hike.

The demand is expected to increase slightly up to over 3 million tonnes for H-beam in fiscal 2012 ending in March 2013 compared with the present term, according to Nippon Steel. It seems that the demand would improve toward mid 2012 when skyscrapers and large warehouses are being constructed. Large fabricators are likely to receive the orders until 3Q 2012.

The demand is expected to increase for sheet pipe pile and sheet pile in fiscal 2012. The demand is forecasted to increase for re-establishment in the disaster areas of the Great East Japan Earthquake. Nippon Steel attempts to correspond with quick delivery.

The market price decreased by about 10,000 yen per tonne to 72,000-74,000 yen for H-beam from peak level in April-May around Tokyo. The demand decreased due to the disaster. The processing charge of steel frame has also decreased.