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Nippon Steel & Sumitomo Metal announces 20% hike in flat steel prices

Add Time:2016-05-13 18:09:00 Clicks:
Nikkei reported that Nippon Steel & Sumitomo Metal will raise prices for steel sheet used to make construction materials and autoparts by about 20%, its first price hike in roughly three years. Prices will increase 10,000 yen ($91.89) per ton starting with June shipments for three main types of steel sheet -- hot-rolled, cold-rolled and coated -- that are sold to distributors and metalworking companies.

A Nippon Steel sales staffer for steel sheet predicted “Shipments to automakers will recover in July or afterward, and demand for use in construction related to the Tokyo Olympics will also grow.”

Steel prices in Japan have continued to decline, so Nippon Steel's price hike could become a turning point if it spreads across the industry. The steelmaker likely will press for higher prices in negotiations with major customers such as automakers and electronics manufacturers.

But an official at a steel trading house said the price hike will take time to spread because sheet demand is still sluggish. Steel-sheet inventories were relatively high at 4.09 million tons as of March 31.
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