Nippon Steel to Hike Wire Rod by 10,000 yen/t in July

Nippon Steel increases the price of wire rod and special steel bar including bar in coil by 10,000 yen per tonne from July shipment. While carbon steel wire rod demand slows, the firm expects the higher price is accepted by the market when the inventory stays at the normal level due to the output cut and strong export demand, the firm explains.

Japanese integrated steel makers try to cover higher cost for raw materials when iron ore and coking coal cost would increase more in July-September after surge in April-June. Nippon Steel already announced 10,000 yen per tonne hike for sheet steel and plate steel in July.

Kobe Steel increases the domestic steel sheet selling price by 10,000 yen per tonne for hot rolled, cold rolled, pickling steel and coated steel from the shipment in July. Kobe Steel decided the hike to keep stable supply when the steelmaking material cost is anticipated to increase and the firm has limited capacity for additional sheet supply while the sheet demand recovers more than expected.

The price hike could squeeze the dealers. Japanese sheet steel dealers’ shipment slows while the export to East Asia is firm. Japanese sheet inventory held by makers, dealers and coil centers increased to 3.49 million tonnes in April from March. The market price turned into adjustment. The dealers seem to increase the offer price. However, the dealers are still on the way to cover higher cost price in April-June.