Japan Steel Plate Makers in Hard Price Negotiations with Large-Lot Users

Japanese steel plate makers are in hard price negotiations with domestic large-lot users. There is recognizing gap on steel plate supply and demand balance as well as plate price gap between domestic and foreign markets, according to JFE Steel. JFE Steel forecasts the supply and demand becomes tight and raw material and fuel prices rise. Thus the firm requires understanding to users about price hike.

JFE Steel launched out the price hike by 3,000-5,000 yen per tonne for domestic market and US$ 50-100 per tonne for export for January-March 2011 in December 2010. The price hike was almost approved, especially for export.

Market demand for steel plate is strong from energy industry, marine structures, plants and shipbuilding mainly at overseas. JFE Steel maintains high operation at plate mills and aims to increase the export price by about US$ 100 to above US$ 900 per tonne until March 2011, even eyeing US$ 1,000 in and after April.

Meanwhile, domestic plate users anticipate global plate supply would ease when South Korean and Chinese steel makers start operation of new plate mills and expand output capacities. Some users consider domestic plate price is higher than the export price and show negative stances against steel makers’ price hike.

JFE Steel explains plate supply and demand could keep tight for a while. South Korean and Chinese steel makers are likely to take time to expand their capacities actually. JFE Steel shows intention to maintain stable supply and favorable relationship with domestic plate users though plate price is relatively high in domestic market.