Kobe Steel to increase roll margin of aluminum flat rolled products

September 16, 2021

Kobe Steel, Ltd.

Kobe Steel, Ltd. has decided to propose to its customers an increase in the roll margin of its aluminum flat rolled products.

Kobe Steel will explain to its customers the reason for the revision and aims to gain their understanding.

Revising the roll margin will enable the Company to maintain a stable supply of high-quality products.

Revision of the roll margin

Applicable products:
All aluminum flat rolled products
Range of revision:
20% or higher increase of the current roll margin
Effective date:
Starting from October 2021 shipments

Reason for the revision

In May 11, 2021, the Kobe Steel Group (also known as the KOBELCO Group) announced its Medium-Term Management Plan (FY2021–FY2023), which prioritizes establishing a stable earnings base and taking on the challenge of realizing carbon neutrality.

In the current economic environment, commodity prices are on the upward trend in view of the outlook for a global economic recovery and monetary easing measures. Under this situation, Kobe Steel is facing with a rise of various costs such as energy-related and other purchased goods, and logistics. Despite its ongoing efforts to reduce costs, it is difficult for the Company to absorb any further cost increases through internal efforts alone in the effort to secure proper profitability.

In order to build a stable earnings base and continue to supply high-quality products that satisfy customers in a timely and stable manner into the future, the Company decided that it must revise the prices of all aluminum flat rolled products.

Aiming to contribute to the further growth of its customers and provide solutions to social issues through various initiatives, which includes taking on the challenge of realizing carbon neutrality, Kobe Steel seeks the understanding and cooperation of its customers for the price revision.

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