ID :
114231
Tue, 03/30/2010 - 22:45
Auther :
Shortlink :
https://www.oananews.org//node/114231
The shortlink copeid
Nippon Steel in interim accord on 90% iron ore price hike with Vale
+
TOKYO, March 30 Kyodo -
Nippon Steel Corp. has tentatively accepted a proposal by Brazil's Vale to
raise the benchmark iron ore price for the largest Japanese steelmaker in the
April-June quarter by around 90 percent from the current level, industry
sources said Tuesday.
The price for the quarter will thus reach a record high between $100 and $110
per ton surpassing the previous high of $77 in fiscal 2008 that ended in March
2009.
Other major Japanese steelmakers are expected to accept the Brazilian resources
giant's sharp iron ore price hike that comes on heavy demand from rapidly
growing Asian economies including China, the sources said.
The iron ore price hike follows Japanese steelmakers' acceptance of a 55
percent hike in coking coal import prices.
As China takes advantage of its growing steel demand for enhancing its
bargaining power, overseas resources giants have taken leadership in
negotiations with Japanese steelmakers, the sources said.
''An industry alone cannot absorb this magnitude of resources inflation,''
Japan Iron and Steel Federation Chairman Shoji Muneoka told a news conference
Tuesday.
Steelmakers have started negotiations with automakers and other customers in a
bid to raise their steel products prices by some 20 percent in April due to the
skyrocketing steel materials prices.
But automakers have opposed any steel price hike, which they say cannot be
passed on to auto prices amid slack domestic demand.
Combined with sluggish domestic demand, price hikes for steel materials, crude
oil and other raw materials are dealing a severe blow to Japanese industrial
materials producers including paper and cement manufacturers as well as
steelmakers.
The Mizuho Research Institute estimates that the recent raw materials price
hikes could boost Japan's overall costs by 3 trillion to 5 trillion yen in
2010.
''If resources prices soar further, the economy could deteriorate again on
dwindling domestic demand,'' an institute official said.
==Kyodo
2010-03-30 22:36:17
TOKYO, March 30 Kyodo -
Nippon Steel Corp. has tentatively accepted a proposal by Brazil's Vale to
raise the benchmark iron ore price for the largest Japanese steelmaker in the
April-June quarter by around 90 percent from the current level, industry
sources said Tuesday.
The price for the quarter will thus reach a record high between $100 and $110
per ton surpassing the previous high of $77 in fiscal 2008 that ended in March
2009.
Other major Japanese steelmakers are expected to accept the Brazilian resources
giant's sharp iron ore price hike that comes on heavy demand from rapidly
growing Asian economies including China, the sources said.
The iron ore price hike follows Japanese steelmakers' acceptance of a 55
percent hike in coking coal import prices.
As China takes advantage of its growing steel demand for enhancing its
bargaining power, overseas resources giants have taken leadership in
negotiations with Japanese steelmakers, the sources said.
''An industry alone cannot absorb this magnitude of resources inflation,''
Japan Iron and Steel Federation Chairman Shoji Muneoka told a news conference
Tuesday.
Steelmakers have started negotiations with automakers and other customers in a
bid to raise their steel products prices by some 20 percent in April due to the
skyrocketing steel materials prices.
But automakers have opposed any steel price hike, which they say cannot be
passed on to auto prices amid slack domestic demand.
Combined with sluggish domestic demand, price hikes for steel materials, crude
oil and other raw materials are dealing a severe blow to Japanese industrial
materials producers including paper and cement manufacturers as well as
steelmakers.
The Mizuho Research Institute estimates that the recent raw materials price
hikes could boost Japan's overall costs by 3 trillion to 5 trillion yen in
2010.
''If resources prices soar further, the economy could deteriorate again on
dwindling domestic demand,'' an institute official said.
==Kyodo
2010-03-30 22:36:17
