Global steel price hikes due to soaring coking coal price. The result is that soaring coking coal price has impacted margins, so that many global steel producers are suffering although steel price has climbed this year.
To help steady price, China reduced its regulations on coking coal producers recently. While global steel producers are still feeling the pinch.
As a result, most recently, producers around the world hiking their steel price to afford the higher production costs.
Due to higher international steel price and higher costs for raw material inputs, Japan’s Tokyo Steel Manufacturing Co Ltd. said on Monday that it would raise the price of its products. The company will raise price from 5 percent to 9 percent in January, the second-consecutive monthly price increase.
And Tokyo Steel Manufacturing boosted price for December delivery by about 11 percent. This is the first time in three years that the company has increased price two months in a row.
Indian steel players could be looking at perhaps the single largest price hike in the last five years. And with the gap between imported and its domestic steel price going up to 18 percent, major domestic steel companies are planning to raise product price 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.
Indian steel consumption in November rose 3.8 percent year on year, but declined 14.3 percent from the previous month, according to Joint Plant Committee data.
At the same time, due to increased demand and higher raw material costs, 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 cost.
From these information, we can know that substantial price hikes for quarterly contracts are expected starting in January 2017.