Nippon Steel to Hike H-Beam to Over 80,000 yen/t

Nippon Steel notified H-beam distributors of additional price hike for February order or March production to realize more than 80,000 yen per tonne of base price. The total price hike apparently is more than 16,000 yen through the price hikes for 3 months in a row to improve the low price level. The firm indicates additional price hike in April to cover higher raw materials cost. The firm also reduces the order receipt form the distributors to improve the supply balance for the market can accept the hike under slow demand.

The firm increases the spot selling price of H-beam for each building project to more than 85,000 yen per tonne. The firm tries to increase the selling price of all steel items for construction applications when iron ore and coal cost should increase more.

The firm tries to improve the low level price for distributors to improve the profitability. The firm eyes additional price hike to cover higher raw materials cost. Depending on the raw materials situation, the H-beam price could reach near 100,000 yen per tonne.

The dealers sell H-beam at around 80,000-83,000 yen per tonne level. With the additional price hike by the major maker, the dealers prepare to increase the reselling price to 85,000 yen level. They would offer higher price sooner while their shipment level is still slow.

Nippon Steel warns the dealers’ H-beam inventory level is still high for the demand when the stock held by members of Tokiwa-kai, which is group of distributors dealing Nippon Steel’s products, increased in January from December. The firm keeps more than 70% production cut compared with normal level to improve the supply balance.