JFE Steel to Increase Flat Steel Price by 3,000-5,000 yen/t for Dealers

JFE Steel notified domestic flat steel dealers on Friday the firm increases the selling price of hot rolled flat steel, cold rolled flat steel and coated steel by 3,000-5,000 yen per tonne or around 5-8% for May delivery. The firm also increases the price for welded pipe makers and re-rollers. The firm tries to improve the profitability under improvement of the business conditions including lower yen rate and higher automobile activity.

JFE Steel increased the price by 20,000 yen per tonne in fiscal 2011 ended March 2012. Some of the buyers accepted part of the price hike due to higher import and competition with other makers.

The firm decided the new price hike attempt. The firm expects the market accepts the price hike when Tokyo Steel Manufacturing increased flat rolled steel selling price by 2,000 yen for April order and offshore major steel makers including POSCO of South Korea and China Steel of Taiwan increased the offer price for Japan.

JFE Steel’s hot rolled coil export price increased to FOB US$ 670-680 per tonne compared with the bottom of around FOB US$ 600 in second half of fiscal 2011. The firm enjoys higher operation rate due to higher export order under better yen rate for the export.

Japanese flat rolled steel inventory held by the makers, dealers and members of national coil centers association was 4.138 million tonnes at the end of February, which decreased for 2 months in a row. JFE Steel’s coil center affiliates are also reducing the stock.