- Rising cost pressures prompt steel price hike
- Cost escalation to pass through downstream value chain
Japan Metal Daily: Kobe Steel Works announced on 24 March that it will increase prices of wire rod and steel bar products by more than JPY 10,000/t ($63/t) for both domestic and export markets, effective for April 2026 shipments. The hike applies across all product categories, including special steel wire rods and high-carbon wire rods, covering all customer segments. This marks the company’s first price increase for these products in two years.
The decision comes amid sustained cost pressures, driven by rising prices of key raw materials, along with higher auxiliary material, logistics, maintenance, and labour costs. Kobe Steel stated that these increases are difficult to absorb through internal cost-control measures alone, making price adjustments necessary. Alloy surcharges will continue to be applied separately, in line with existing agreements with customers.
The company also emphasized its ongoing efforts to strengthen its production base to ensure a stable supply of high-quality products, while enhancing its responsiveness to customer requirements. Through these initiatives, it aims to deliver value and support the business growth of its customers and partners.
Wire rod and steel bar products typically move through a multi-stage supply chain before reaching end users, serving as key inputs for secondary processors and component manufacturers. Given this structure, the company highlighted the importance of appropriate cost pass-through across all stages of the value chain to sustain the supply of competitive, high-quality products. Pricing trends across the broader supply chain are therefore expected to be closely monitored.
Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.
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