Nippon Steel lifts April H-beam prices by another $39/t

Nippon Steel, Japan's largest integrated mill, has decided to add Yen 5,000/tonne ($39/t) to its H-beam list prices for April domestic sales with immediate effect, mainly to transfer the further rise in production costs. The latest hike is Nippon Steel's third increment by Yen 15,000/t in total, and the company also warned of additional hikes in coming months.

Nippon Steel Structural Shapes, the company's section subsidiary based in Wakayama in western Japan has also added Yen 5,000/t for April sales, and it plans to halve its April sales volume against March, to tighten H-beam supply and to support the market price to rise.

Both companies do not reveal their list prices, but as of April 19, SS400 grade 200x100mm H-beams in Tokyo were transacted at Yen 115,000-116,000/t, unchanged on month, but up Yen 5,000/t from January, sources confirmed.

Nippon Steel's H-beam competitor, Tokyo Steel Manufacturing, has also lifted a total of Yen 1,3000/t to its product prices for March-May sales, and Tokyo Steel's list price for SS400, 200x100mm H-beams has become Yen 124,000/t for May sales, as reported.

A Tokyo-based construction steel trader shared that H-beam demand has been improving while stocks have started to decline, both of which will push market prices to rise soon. "But producers have already been considering further hikes, so it will be difficult for market prices to rise at a fast pace," he emphasized.

By the end of March, H-beam stocks at Nippon Steel's Tokiwakai group of some 90 H-beam distributors across Japan declined by 0.3% from February and by 2.9% on year, or the first on-month drop in six months, according to the company.

Meanwhile, Nippon Steel estimated that a Yen 10,000/t hike in H-beam prices will be needed for project-based contracts to transfer its existing higher production costs, and the company will negotiate with those customers individually.

Written by Yoko Manabe, yoko.manabe@mysteel.com

This article has been published under an exchange agreement between MySteel Global and SteelMint.