JFE Steel Will Increase Steel Price to Cope with Mining Cost Pressure

JFE Steel Will Increase Steel Price to Cope with Mining Cost Pressure

Japan’s JFE Steel warned that the company will share some of the raw material cost pressure to downstream users by raising the price of finished steel to maintain the company’s profit level. Last month, iron ore prices once reached the highest point in nearly five years. JFE Steel Chief Financial Officer Masashi Terahata said in an interview. “Although there are certain bottlenecks in the current raw material supply market, we can still purchase iron ore and produce finished steel products in the short term. The current main problem is price. In this fiscal year, the company need reflect the cost pressure of iron ore prices and other expenses on our steel prices.” Even though the iron ore price increases, Glory Steel will offer reasonable price for customers to support them to get high quality steel products, like hot rolled steel plate, hot rolled steel square bar, etc.

JFE Steel is also worried that if China’s domestic economy slows, China may export cheaper steel to Asian countries. Terahata said: “As China’s steel demand is supported by public spending on infrastructure construction, performance is still strong. JFE Steel has not yet experienced the serious impact of Chine and US trade friction. However, on one hand, China has recently merged and reorganized in coastal areas to build large steel groups similar to Japan’s big steel companies, and on the other hand, China has started to close small and aging factories. If China’s steel plants achieve scale upgrades, it may pose a threat to us.”