Nippon Steel to increase long-term sales prices for auto industry

Tuesday, 30 November 2021 14:29:01 (GMT+3)   |   Istanbul

Japan-based Nippon Steel Corporation has stated that it has enhanced efforts to improve its long-term contract sales prices as raw material costs have increased.

Eiji Hashimoto, the president of the company, said that Nippon needs customers to cooperate to guarantee long-term stable product supply and continue efforts toward the development of high-quality products that customers demand, especially in the automotive industry. He stated that low domestic prices need to be corrected to close the gap with international prices.

The company has made progress in correcting prices and its second half contracts have been almost settled, SteelOrbis understands.

Nippon Steel also plans to change the process of the contracts, concluding talks on prices before delivery and shortening the contract terms to three months from the current six months.

Meanwhile, the company expects its performance in the fiscal year 2021 to be a strong V-shaped recovery and stated that its annual profit may exceed its upgraded forecast as strong demand increased global steel prices, as SteelOrbis previously reported. Nippon Steel said it also expects a recovery in steel demand for the given financial year after the decline caused by the pandemic.

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