Japan Integrated Steels Offer Wide Plate Price Hike to Korean Shipbuilders

Japanese integrated steel makers are offering steel plate price hike against South Korean shipbuilders for April-June shipment. Nippon Steel and JFE Steel launched price hike offers in March, even eyeing hike range by more than US$ 300 per tonne partially. Steel makers aim to improve the price level by reflecting material and fuel cost up on the export price. Steel plate supply globally represents tight thanks to healthy demand from shipbuilding and energy industries. Japanese steel makers also aim to narrow price gap between domestic selling price and exporting price under strong yen trend.

Japanese integrated steels seem to show strong selling stance in latest price negotiations when global supply and demand balance of steel plate has currently tightened while Japanese integrated steels are unable to increase steel plate supply largely after mega earthquake. Steel makers’ production bases are partially damaged by earthquake while after-quake construction and repair demand would occur for steel plate. Steel makers’ rolling capacity may narrow for export. Meanwhile, strong yen trend impact steel makers’ profitability.

Steel plate price hike causes productive cost up on South Korean shipbuilders. Recent price negotiations took long term for agreement between Japanese integrated steel makers and South Korean shipbuilders. This time, steel makers try to conclude export price talk in a short term.