Nippon Steel Raises Magnetic Sheet Price for Oct-Mar 2010

Nippon Steel plans to raise the selling price of non-directional magnetic steel sheet for heavy electric machinery and appliance makers in the last half of fiscal 2009 ending in March 2010. Price gap between export price and domestic price for specific users is likely to widen due to high overseas sheet price. Additionally, steel makers’ production cost is rising for substantial material prices.

The demand is increasing from electric appliances thanks to Chinese governmental economic measure. Supply of magnetic steels sheet is tightening. Major suppliers, Bao Steel, Wuhan Iron & Steel or Anshan Iron & Steel, are increasing the selling price since July. They launched the price hike by about US$ 200 per tonne for September orders. Chinese makers’ selling price is approaching US$ 900 per tonne, up by about US$ 300 from April-June.

Nippon Steel raised the export price by about US$ 100 for July-August shipment from June and by US$ 30 for September shipment. The firm is offering the price hike by US$ 150 for October shipment. Some users are approving the price hike. Nippon Steel will penetrate the hike when the demand from appliances keeps firm in China and ASEAN.

Nippon Steel reduced the selling price by 15,000 yen per tonne for domestic specific users to reflect price down of raw materials. However, the export price exceeded the domestic price due to rising overseas market price. Steel makers’ production cost is rising for substantial materials such as ferroalloy. Heavy electric machinery and appliance makers are expected to disapprove the price hike.