Nippon Steel Offers Non-directional Magnetic Steel Sheet Hike by US$ 150 to Asia

Nippon Steel will offer price hike of non-directional magnetic steel sheet by US$ 100-150 per tonne for Asian consumers except for Japanese users effective for July-September shipment. The product supply keeps tight while raw material prices are expected to surge in July-September. However, Chinese steel market price recently levels off. Bao Steel set the selling price for domestic market of July shipping unchanged. Asian consumers are likely to show disapprovals for the hike under the market situation.

Supply and demand balance of magnetic steel sheet is tight in Asia with strong demand from electric appliance or automobile makers mainly in China. Steel makers don’t have available capacity to meet the strong demand. Magnetic sheet inventory of coil centers doesn’t increase in South China area though many appliance makers are located in the area.

Raw material cost is expected to rise for July-September. Averaged spot iron ore price, a benchmark for iron ore price negotiations between Japanese integrated steels and overseas material suppliers, was US$ 130 per tonne in March and US$ 160 in April. The spot price hit US$ 190 at the current peak but lowered to around US$ 170 in recent days. However, the price is still higher than Japanese integrated steels’ contract price at US$ 110 for April-June.

Chinese market price is presently weakening by monetary restraint. Some steel products price dropped actually. Car sales decreased in April, too. Nippon Steel raised the selling price of the sheet by US$ 200 per tonne for April-June. The price is approaching FOB US$ 1,000 per tonne for June shipment.