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JFE Steel Warns Of Steel Price Hike As Iron Ore Stays Near 5 Year High

Steel News - Published on Tue, 11 Jun 2019

Image Source: Nikkei Asian Review
Bloomberg reported that JFE Steel has warned that it will seek to pass the surging cost of iron ore, which reached a five-year high last month, on to customers to protect its margins. JFE Holdings Inc CFO Masashi Terahata said in an interview “There’s no immediate risk of an inability to secure iron ore supplies or make steel due to supply bottlenecks. The problem is the price. The company will need to pass iron ore costs, as well as other expenses, on to product prices for the financial year through next March.”

JFE is also worried about the possibility of China shipping cheaper steel to Asian countries if its domestic economy slows. He said “The company itself has yet to feel any serious damage from the China US trade war as Chinese steel demand remains strong, supported by public spending on infrastructure. But China intends to create and consolidate into large mills located in coastal areas, like the ones in Japan, while shutting small and aging mills. If Chinese mills become in such shape, they will be a threat to us.”

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Posted By : Ratan Singh on Tue, 11 Jun 2019
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