Kobe Steel Raises Sheet Price by 15,000 Yen/t in April

Kobe Steel announced on Tuesday the firm raises the selling price of hot, cold, pickling and surface treated sheets by 15,000 yen per tonne for domestic dealers and processers effective for April shipment. The firm also requires the price hike by 15,000 yen to automobile and electric appliance makers. Raw material prices are rising while steel sheet supply is tightening in Asian emerging countries. Nippon Steel and JFE Steel already announced the price hike. Sumitomo Metal Industries seems to announce the price hike to dealers. Steel sheet market price would follow the trend.

Japanese steel makers agreed with BHP Billiton Mitsubishi Alliance to increase coal price by US$ 200 per tonne for April-June shipment. The price increases by 55% compared with fiscal 2009 (April 2009-March 2010). The contract term was also changed to 3 months from previous one year this time.

Kobe Steel suggests the additional price hike for steel sheet in July along the raw material price. The firm has also announced price hike for other steel items such as plate or wire rod effective in April.

Japanese steel sheet market is inactive except for automobiles and electric appliances. Sheet users require price cut to steel makers. Dealers and coil centers are trying to follow steel sheet makers’ price hike but the users are disapproving the hike.