Nippon Steel Corporation will raise prices of all carbon steel pipe products for domestic sales by JPY 20,000/tonnes (t)($170/t) for April’22 deliveries and has already started to offer at similar prices to distribution companies.
The hike is attributed to a rise in raw material prices, prices of auxiliary materials, logistics and other costs. The company will maintain a system that enables stable supply and reproduction in the face of an expected gradual recovery in demand in key sectors such as construction and manufacturing.
High input costs
Raw material prices have risen sharply, with costs for materials such as alloys, fuel, electricity, freight and logistics also rising significantly. It was necessary to correct the gap with specialised products, which have been shrinking in the steel pipe market. Therefore, further price rise was inevitable.
Outlook
The tight supply and demand situation for steel products will persist in the near term owing to China’s continued focus on curbing production and exports and the chaotic situation in Ukraine.
Nippon Steel focuses on maintaining a stable supply system by making full-scale sales reforms such as pre-determining prices and reviewing the distribution system.
Depending on raw material prices and steel supply and demand trends, the company will consider and implement additional price rise in the near future, sources confirmed.
Note: This insight has been published in accordance with an article exchange agreement between SteelMint and Japan Metal Daily.
.jpg)
Leave a Reply