Nippon Steel to Launch Export Price Hike for GO by US$ 300/t

Nippon Steel launches export price hike of grain oriented electrical steel sheet by US$ 300 per tonne effective in and after April. Demand for small size transformer is recently increasing in China and Asian countries. Meanwhile, Baoshan Iron & Steel of China, the largest supplier of grain oriented electrical steel sheet in the country, announced price hike by total 900 yuan (approximately US$ 140) for February-March shipment to domestic market. Nippon Steel supposes the market price turned to uptrend.

Raw material costs are forecasted to jump up in and after April. Nippon Steel regards this price hike as the first step and eyes next hike in order to improve export price level early. Nippon Steel aims to raise the spot export price at first while to appeal price hike in large-lot price negotiations starting in May for shipment in the second half of 2011 to U.S. and European customers.

Market demand still maintains weak for large-size transformer while represents steady for small-size transformer. Electric power development and private sectors’ investment are active along economic growth in China and Southeast Asia. Recently small-size transformer makers are increasing adoption of high-efficient electrical steels when environmental regulations tend to be tightened in many countries. Orders seem increasing for Japanese electrical steel makers including Nippon Steel since Japanese mills can supply high grade electrical steels.