Nippon Steel Notices 15,000 yen/t Sheet Steel Hike to Dealers

Nippon Steel decided 15,000 yen per tonne of hot, pickling, cold and coated sheet steel for April shipment and noticed the hike to distributors on Wednesday. Other makers are expected to follow the fist price hike since April 2008. The maker’s hike would lift domestic market price.

Nippon Steel also decided to increase the sheet price by 15,000 yen per tonne for domestic rerollers including pipe makers. The firm will offer similar hike for automobile, appliances and other contract users. The firm indicates additional hike depending on ongoing raw materials price negotiation.

The firm tries to cover higher cost price while the price negotiation continues for iron ore and coking coal for fiscal 2010 starting April when raw materials cost increases for ferrous scrap, ferroalloy and coke.

Domestic sheet steel supply gets tighter when hot, cold and coated sheet inventory keeps as low as 3.4 million tonnes. The sheet market price is likely to increase while some distributors resist the price hike under very slow domestic demand.