Daido Steel Raises All Special Steel Products by 15,000 Yen/t in April

Daido Steel raises selling price of all special steel products by more than 15,000 yen per tonne for dealers and specific users including automakers effective for April shipment when ferrous scrap and fuel costs are rising largely. The firm also revises extra price such for heating service. The firm eyes additional hike if raw material price continues to increase.

Ferrous scrap price jumped by 50% from a year earlier. The firm’s production cost is rising. Heavy oil and natural gas costs are also rising along crude oil price upsurge. Sub material prices are rising, too. The firm increased the selling price by 15,000 yen per tonne in April 2010. In this year, high fuel price is especially making impact on profitability.

The firm’s operation keeps steady. The production recovered to above 90% of pre-shock level. The demand is strong mainly for overseas automobile production. Daido Steel forecasts the firm’s production increases slightly in fiscal 2011 starting in April compared with fiscal 2010. The firm considers price hike is necessary for stable supply.

The firm has introduced surcharge system of ferrous scrap price mainly for large lot users while, this time, the firm offers price hike to all users at same range. The firm also advances price hike for April-June export shipment.