Reuters reported that Nippon Steel Corporation has decided to raise the April contract price for H beams by a record high of just over 20% MoM or JPY 15,000 a tonne to around JPY 80,000 a tonne.
Coming on the heels of the JPY 5,000 price increase for February contracts and the JPY 3,000 hike for March, the new price translates to a JPY 23,000 a tonne or nearly 40% jump from the January contract.
The increase follows a 55% rise in the price of some coal that Japanese steelmakers buy in the April to June 2010 quarter. Prices of other raw materials have also been climbing, with Brazilian miner Vale SA reportedly demanding a nearly 90% hike in iron ore prices.
H beams are mainly used as steel frames in buildings and factories. Major blast furnace steelmaker JFE Steel Corporation is also expected to raise its H beam prices, while electric furnace steelmaker Tokyo Steel Mfg Co has lifted its H beam price by a total of JPY 11,000 a tonne for February to April 2010 contracts.