Mitsubishi Materials to Hike High Speed Steel Tools by 5-10%

Mitsubishi Materials announced on Wednesday the firm raises the selling price of high speed steel tools by 5-10% effective for shipment on and after 1 October. This is the first hike in 3 years to reflect higher material costs such for steel, vanadium, tungsten and molybdenum.The firm will raise the selling price by 10% for high speed steel drills and non-coated high speed steel end mills, by 5% for coated high speed steel end mills and by more than 5% for gear cutting and broaching tools.The previous hike was in 2005 by 10% for high speed steel drills and non-coated high speed steel end mills, by 5% for coated high speed steel end mills and by more than 10% for hobs and broaches.The firm has tried to reduce costs by rationalization and productive efficiency improvement. However, material costs such for steel and rare metals have soared up due to mineral resource oligopoly trend and demand growth in emerging countries. The firm decided the additional hike when material prices seem to continue increasing.