Japan: Nippon Steel raises H-beams prices by JPY 7,000/t for March sales

Nippon Steel Corporation will raise prices of H-beams for retail sales for March contracts by JPY 7,000/tonne (t) ($58/t), as per a company announcement. This is the second consecutive month of price increase, bringing the cumulative total to JPY10,000/t ($82/t). The price increase is based on a comprehensive consideration of supply and demand trends and the rising raw material costs.

As a large production line in the Kimitsu district of the company's East Japan Steel Works will be suspended in March this year, sales will be targeted from Kashima and Sakai. The plate and construction materials sales department will consider raising prices from next month onwards. The offers for projects were suspended last week with a view to raising prices. The company plans to lift the suspension next week and to implement price increases while shortening the contract period.

Raw material procurement concerns

Procurement of steel raw materials such as iron ore, coal and scrap, non-ferrous metals, and resource energy such as crude oil and LNG have soared owing to the current Russia-Ukraine tension. In addition, steel production and shipments in Russia and Ukraine have been affected by the suspension of production by steel mills in conflict areas, economic sanctions against Russia and the stalling of Black Sea maritime trade due to the blockade of major ports. All these factors have resulted in a sharp rise in steel prices, mainly in Europe, Turkey and ASEAN countries.

This impact has also reached Japan, with the cost burden on manufacturers increasing significantly. They are forced to consider the nature of their sales and contracts, including pricing and contract periods, considering that the impact will be significant and prolonged.

Outlook

The company will continue to monitor supply and demand trends, raw materials and other cost trends and consider price increases from next month onwards, and will continue to work on structural cost issues.

Note: This insight has been published in accordance with an article exchange agreement between SteelMint and Japan Metal Daily.