Nippon Steel to Raise Steel Sheet Price by 10,000 Yen/t in July

Nippon Steel announced on Wednesday the firm raises the selling price of hot-rolled, cold-rolled, pickling and surface treated steel sheet supplied to distributors and secondly processors (pipe, shape and steel drum) by 10,000 yen per tonne effective from July shipment. The firm announced the hike to distributors on Wednesday. This is an additional hike after the previous hike announced in April. Other integrated steel makers are expected to follow the hike when JFE Steel had also announced the additional price hike of steel sheet this week.

Nippon Steel offers the hike in the same range against specific users such as automobile makers, electric appliance makers and construction material makers. Some users approved the hike for April-June. Price negotiations with specific users are concluding soon.

Nippon Steel explained material costs are likely to surge for iron ore and coal in and after July. At the same time, steel sheet supply is expected to keep tight due to strong demand in East Asia while domestic market inventory of steel sheet is currently balanced.

Steel sheet market price is weakening in China. However, Nippon Steel analyzes this is a temporary movement.