Nippon Steel Gets Wide Hike for Shipbuilding Plate for Korea

Nippon Steel concluded the price negotiation with Hyundai Heavy Industries and other South Korean shipbuilders for shipment in and after October. Nippon Steel got 40,000-50,000 yen per tonne hike and the price level is expected to increase to FOB 140,000-150,000 yen. Nippon Steel offered 50,000 yen per tonne hike under tight supply condition and higher Asian market price. South Korean shipbuilders resisted the 1.5 times of wide hike but they finally accepted the hike under tight supply. Plate demand increases for shipbuilding, construction and industrial machinery and energy industry. Under the limited supply capacity from the makers, the international supply balance gets tighter. South Korean shipbuilders got 126.53 gross ton of order receipt in 2007, which is 63.8% higher than level in 2006, according to Lloyd. The shipbuilders expand the building volume. If they would fail to purchase the plate materials, the builders could delay for the building schedule.