Coil Centers Launches Steel Sheet Price Hike by 3,000 Yen/t, Osaka

Coil centers around Osaka launch price hike announcement for base-size hot rolled steel sheet and pickled steel sheet by 3,000 yen per tonne this week. They announced the previous price hike by 5,000 yen in December and the price up was fully approved by the users. Coil centers are hurrying to raise the reselling price in order to cover cost price upsurge.

Local market price had been weak by November. The bottom price was 55,000 yen per tonne for hot rolled sheet with 3.2 millimeters of thickness, 4 feet of width and 8 feet of length. In late November, local coil centers moved to raise the reselling price by 5,000 yen since Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, announced hot coil price hike by 8,000 yen for January sales. Coil centers’ offers were smoothly approved.

However, coil centers are still suffered from loss due to high cost price. Nippon Steel and other Japanese integrated steel makers announced price hike for hot rolled, cold rolled and surface treated steel sheets by 5,000 yen effective for January contracts with dealers. Moreover, China Steel of Taiwan raised its hot coil export price to Japan by 4,000 yen for January-March. Anshan Iron & Steel also announced price hike for hot coil export to Japan for 2 months in a row.

Coil centers around Osaka feel necessity to strengthen their reselling stances when steel makers’ selling prices should surge widely. One coil center said they cannot sweep losses even if 3,000-yen price hike is fully approved and additional price hike is absolutely necessary in and after February.