Japanese producers hike steel sheet prices
Major Japanese steelmakers have started to raise the price of their steel sheet that they supply the
automotive sector. The price increases are ranging between 5-10%. This is the first time in the last five years that producers in the
automotive industry and steelmakers agree on a price hike of about 10%.
According to reports the originally intended price rise was at the rate of 20%, taking the 20% rise of steel sheet prices since 1999 however same could not be applied yet as the automakers have only accepted the 10% maximum. Still, the steelmakers appear to be pretty determined to push for further increases in the near future.
The price increases will be negotiated individually with each steelmaker and automaker, and the new prices will start to apply from October shipments.
The steelmakers are planning to reduce the exports to
China, from where a strong demand had been received since last year. The intention with reducing the exports to
China is to let the inventory levels decrease.
Japan will thereafter have the chance to boost the steel sheet prices.