JFE Steel in Full Production of Special Steel Bar and Wire Rod

JFE Steel is currently in full production of special steel bar and wire rod. The demand has recovered for thin products from automobiles while the demand also upturned for thick products from construction machines in March-April. The demand may weaken in and after autumn 2010 when Japanese government’s tax cut measure for eco car will cease. Meanwhile, the demand could be supported by manufacturing industry’s capital expenditure restarts.

JFE Steel produces special bar and wire rod in Kurashiki area of West Japan iron works and Sendai iron works of JFE Steel’s subsidiary, JFE Bars & Shapes. Sendai iron works continues full operation thanks to steady export. Automobile production has increased along Japanese government’s tax measure. Moreover, construction machine output is increasing for export to emerging countries. At the same time, Japanese automobile and construction machine makers tend to establish new plants in emerging countries and special steel demand is expected to increase.

In Japan, manufacturing industry is restarting capital expenditures. Orders are gradually increasing for thick special steel bar when industrial machine production is recovering. JFE Steel aims to keep high operation in the last half of fiscal 2010 (October 2010-March 2011) by following the stable demand from construction machines, industrial machines and export though car market condition is unforeseeable.

Under full operation, JFE Steel announced to raise the selling price of special steel bar and wire rod by 10,000 yen per tonne for July-September shipment to reflect high material costs. The firm raises the export price by US$ 100-150 per tonne for July-September shipment. The firm decided the price hike for stable product supply when the demand is recovering and the supply is tightening.

The firm raises the selling price by total 25,000 yen for April-June and July-September. The firm raised the price for the first time in late 2 years. As to the export, the firm increased the price by US$ 150-200 for April-June. Some of offshore customers have already accepted the hike for July-September.