Nippon Steel Hikes H-beam by 3,000 Yen/t against Domestic Dealers

Nippon Steel announced H-beam price hike against domestic distributors by 3,000 yen per tonne effective for March contracts. Nippon Steel raises the selling price for 2 months in a row by total 8,000 yen. The firm tries to bottom up the price when raw material prices are expected to increase and overseas H-beam demand is steady. The firm eyes the additional price hike by a wide range in or after April.

Nippon Steel also seems trying to raise the selling price against the users other than distributors such for large-size building construction. Iron ore and coke prices are likely to surge widely in fiscal 2010 starting in April though Nippon Steel is currently concerned about tight supply of raw materials due to the firm’s active steel export. The firm decided the hike for the stable product supply.

Nippon Steel has raised the selling price for other steel products including plate and sheet by 15,000 yen per tonne so far. H-beam’s hike is relatively delayed. Meanwhile, domestic construction market maintains stagnant. The firm tries to raise the H-beam selling price step by step.

H-beam inventory continued to decrease for 3 straight months at the members of Tokiwa-kai, a group of distributors dealing Nippon Steel’s products. The supply and demand balance is improved. Nippon Steel continues to reduce H-beam order receipts from distributors and H-beam output eyeing the actual demand level and the wide-range price hike announcement in near future.