Japan Major Steels Get Near 20,000 yen/t Plate Hike for Shipbuilders for 1H

Japanese integrated steel makers are concluding plate price negotiation with domestic shipbuilders for April-September. The steel makers don’t explain the situation as individual transaction but they apparently agreed with part of the users to increase the price by near 20,000 yen per tonne. The steel makers keep the negotiation with other makers but the steel makers are getting certain hike to cover higher raw materials cost.

The steel makers sought maximum 25,000 yen per tonne hike to the shipbuilders for the half year shipment. The steel makers try to get the hike to cover higher raw materials cost and to keep stable supply under worldwide tight plate supply.

The shipbuilders resisted to the wide hike strongly. The shipbuilders emphasized the severe business condition and the potential wide steel price hike could damage shipbuilding industry while the new order receipt and the price level show sign to recover.

The plate suppliers and buyers couldn’t reach meeting point and the negotiation keeps longer time than usual. However, they are finding the compromise recently. Japanese shipbuilders still have around 3 years of order backlog and keep higher level of operation rate. The shipbuilders apparently accepted certain hike when the steel makers should keep the stable supply.

Japanese steel makers already won near 20,000 yen per tonne hike for automotive flat steel in the series of price hike negotiations with contract users.