Soaring Coking Coal Prices Prompt Global Steel Price Hikes
December 19, 2016 20:22 GMT
Even though steel prices have climbed this year, many global steel producers are suffering as soaring coking coal prices have impacted margins. China recently reduced its regulations on coking coal producers to help steady prices but global steel producers are still feeling the pinch. Most recently, this has resulted in producers around the world hiking their steel prices to afford the higher production costs.
In India, major domestic steel companies are planning to raise product prices by Rs 6,000 per ton starting in January, the biggest upward revision by steel producers since the government started taking measures to curb cheap imports in October 2015. According to Joint Plant Committee data, domestic steel consumption in November rose 3.8% year-over year, but was down 14.3% from the prior month.
On Monday, Japan’s Tokyo Steel Manufacturing Co Ltd. said it would raise the prices of its products due to higher international steel prices and higher costs for raw material inputs. The company will raise prices 5%-9% in January, the second-consecutive monthly price increase. Tokyo Steel Manufacturing boosted prices for December delivery by about 11%. This is the first time in three years that the company has increased prices two months in a row.
Meanwhile, according to Hellenic Shipping News citing MEPS, steel producers in the Nordic region pushed through large price increases for cold rolled coil in December due to increased demand and higher raw material costs. Looking forward, substantial price hikes for quarterly contracts are expected starting in January 2017.
