Nippon Steel Raises Magnetic Sheet Export Price by US$ 50 in January

Nippon Steel agreed with Chinese customers in price hike of exporting nondirectional magnetic steel sheet by US$ 30-50 per tonne for January shipment compared with November. Nippon Steel had offered the hike by US$ 50-70. The export price will approach FOB US$ 800 per tonne for low grade products.

The demand for nondirectional magnetic sheet is steady from electric appliances in Asia. Air conditioner inventories are in the moderate level at 1-1.5 months to the shipment. Coil centors’ sheet inventories are rather tight against the demand. The demand is also increasing for motors of electronic devices. Japanese large dealer source said Chinese demand for home appliances is expected to keep stable thanks to the governmental economic stimulus measure.

Nippon Steel had raised the export price by about US$ 250 per tonne since July. However, Chinese market price had lowered from mid August to late October when domestic steel sheet output and inventory expanded. The gap widened between Nippon Steel’s export price and Chinese domestic market price. As a result, Nippon Steel skipped the price negotiation for December shipment.

Chinese major steel makers recently announced the price hike for domestic shipment in December and January. Additionally, raw material costs such for iron ore and coal are expected to rise in fiscal 2010.

Nippon Steel is talking with Japanese customers to raise the spot price by US$ 100 per tonne for January-March shipment from October-December.