Nippon Steel to Hike Wire Rod by 15,000 yen/t for Japan Buyers

Nippon Steel announced on Thursday the firm increases the selling price of wire rod by 15,000 yen per tonne for domestic buyers for April shipment. The first price hike since October 2008 includes carbon steel wire rod, deformed wire rod, bar in coil, large diameter bar in coil and special steel wire rod. The price increases by near 20% for carbon steel wire rod when the raw materials cost increases. The firm eyes additional price hike depending on the market condition and raw materials price negotiations.

The firm recognizes the supply is tight for steel code, spring and prestrest concrete wire due to higher demand in East Asia. The firm keeps high level operation after severe production cut under financial crisis. Chinese wire rod market price rebounded since late 2009 and is expected to increase more due to strong demand and higher cost for raw materials and energy.

The firm tires to keep stable supply through the price hike when raw materials cost increases for ferrous scrap, coke and other subsidiary materials and iron ore and coking coal could increase widely depending on the negotiation. The firm tries to increase the contract price for special steel wire rod and bar and the export price.