Daido Steel to Hike Special Steel Items by 15,000-20,000 yen/t

Daido Steel will increase the selling price by 15,000-20,000 yen per tonne for special steel items including structural steel and bearing steel except for stainless steel and tool steel for April shipment. The firm tries to pass a part of higher cost for ferrous scrap, ferroalloy and energy through the first price hike since June 2008. The firm eyes additional price hike depending on the cost situation.

The firm expects the raw materials cost could increase more while the scrap cost already increased by around 80% since the beginning of the year. The firm tries to increase the selling price to the level enough to cover long term investment for facility and research and development in order to keep stable supply. The firm improves the profitability through wider price hike for loss making items.

The firm’s structural steel production reaches 90% of the peak for automobile application. The demand recovers to 70% level for construction and industrial machinery. The firm expects the supply balance would allow the price hike after the dealers finished the inventory adjustment.