Apr 14, 2022 (Japan Times) - Japan’s biggest steelmakers are raising prices of the metal used in everything from cars to skyscrapers and warning of more to come.
JFE Holdings Inc.’s steel-making unit will raise prices by ¥20,000 ($160) a ton across all products from April to compensate for surging coking coal and iron ore costs, according to a spokesman at the company. Additional hikes are likely this year as transport costs are also rising, he said. JFE estimates its average steel prices were ¥115,000 a ton in the quarter through March.
Nippon Steel Corp., said it raised domestic prices of steel sheets — used in construction and electronics — by ¥10,000 a ton for May-delivery spot contracts. Japan’s biggest steelmaker, warned in a response to questions that more prices rises will be needed this year. Nippon has estimated its average steel prices at ¥130,000 a ton in the March quarter.
The prices of the two main inputs for steel production — iron ore and coal — have risen as Russia’s invasion of Ukraine exacerbated supply shortages. Australian coking coal has jumped 45% so far this year, while iron ore prices in Singapore are up around 27%. More than 40% of the steel from the two companies is destined for export with carmakers the biggest customers.
