Japan: Nippon Steel raises heavy plate prices by JPY 5,000/t ($31/t) for Jul’26 orders amid rising operating costs

• • Company capitalising on recent demand recovery to pass on rising costs

• • Further price hikes possible amid “structurally high” costs post Middle East crisis

Japan Metal Daily: Nippon Steel has decided to implement an additional price increase of JPY 5,000/tonne (t) ($31/t) on heavy plate sales across all domestic sectors, effective for new orders accepted in July (generally corresponding to shipments in September). Combined with the JPY 10,000/t ($62/t) increase announced for orders accepted in April, the cumulative price hike in the last three months amounts to JPY 15,000/t ($92/t).

This decision stems from the sharp rise in production costs, which the previous price increase was unable to fully cover. Furthermore, domestic demand for thick plates, which had been sluggish for a long time, is finally improving, and as a result, the supply of coils has been tightening rapidly. It seems that, bolstered by these favourable supply-demand conditions, the company is moving quickly to pass on costs that exceed what it can absorb through internal cost-cutting measures.

The additional price increase applies to all sectors, including domestic contract customers, construction material projects, and sales to general retailers. The company has already begun notifying customers and distributors of the increase.

Domestic demand for thick plates had been stagnant for a long time. However, immediately after the price increase in early spring, demand began to improve, though this was limited to certain segments. Recently, however, the construction-related sector, a key area, has recently begun to recover. Orders for steel, particularly for large-scale projects such as semiconductor factories, data centres, and logistics warehouses, are gradually increasing. Furthermore, manufacturing sectors such as construction machinery, industrial machinery, and shipbuilding are showing clear signs of recovery.

On the cost front, in addition to soaring labour, transportation, and materials and equipment costs, prices of crude oil, LNG, bunker fuel, and refractory materials and various transportation fees have also risen due to the subsequent deterioration of the situation in the Middle East. Since these factors are not merely temporary but involve “structural elements,” the company stated that “it is essential for the entire supply chain to bear its fair share of the burden in order to maintain a sustainable and stable supply,” leading to the decision for this additional price increase.

Although the retail market has yet to emerge from its slump, signs of recovery are beginning to emerge in some regions. Despite the time lag, if manufacturers price increases lead to a revival of end-user demand, the market for base materials and the prices of cut sheets are expected to strengthen further.

However, given the outlook that various costs will remain “structurally high” for the time being, the company suggests that “depending on future trends, there is a possibility of announcing further price increases.”

Note: This article has been published in accordance with a content exchange agreement between BigMint and Japan Metal Daily.