Nippon Steel to Hike Wire Rod Export by US$ 50/t in April-June

Nippon Steel offers more than US$ 50 per tonne export hike for high carbon wire rod for April-June shipment from current US$ 1,200-1,300. The firm decided the hike under tight supply due to strong demand for automobile at home and abroad. The firm tries to improve the margin narrowed in past 2 years while the iron making raw materials cost decreases recently.

The firm increased the export price by US$ 200-250 per tonne for April-June 2011. But the firm cannot cover higher raw materials cost. The firm tries to keep improving the export price during fiscal 2012 starting April.

The firm sees wire rod demand for saw wire is in adjustment phase due to slower demand for solar light panel in Europe. The firm expects the market would recover from the current situation while the export price is US$ 2,500 per tonne for standard grade and US$ 3,000 for high grade.