JFE Steel Corporation will increase prices of all special and ordinary steel bars and wire rods (including semi-finished products) by JPY 15,000 per tonne (t) ($131/t) for Mar'22 contracts for domestic as well as overseas sales.
The hike in price will apply to customers who do not apply to the price-setting system linked to raw material prices, and the cumulative price increase since Jan'21 will be JPY 50,000 ($435).
Prices of coal and raw materials used in the blast and electric furnaces have risen, while prices of alloyed iron, material costs, logistics and outsourcing costs as well as energy costs have increased.
Cost increases have reached a level that cannot be absorbed by end-users. Demand for special steel bars and wires for construction remains at a high level. In the automotive segment, semiconductor shortage and instability in supply of auto parts is still continuing but likely to recover.
On the supply side, the effects of the renovation of blast furnaces in Japan and overseas markets are matters of pressing concern and supply and demand continue to remain tight. Further price revisions will be considered depending on future trends in raw materials and other allied costs.
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