Hanwa to Raise Plate Steel Reselling Price by 5,000 yen/t

Hanwa Co. announced on Thursday the firm increases plate steel reselling price by 5,000 yen per tonne from the inventory in Tokyo, Osaka and Nagoya from Monday. The firm tries to improve the profitability through the hike while the operation is loss making due to lower selling price under demand slump.

Japanese inventory of hot, cold and coated steel sheet keeps decreasing nationwide. The firm recognizes the hot coil inventory adjustment finished and the dealers have some stock out sizes. The firm also sees the international market price increases in Asian market and the Japanese import price also increases.

Japanese distributors expected domestic integrated steel makers would reduce the steel price widely. However, the makers show no sign to cut hot coil price additionally when the makers finished annual price negotiation for raw materials but the cost is higher than expected. Domestic electric furnace steel maker also increases the hot coil when higher ferrous scrap market price also supports the steel price.