Nippon Steel wins 10% price hike on plate-source

TOKYO, Dec 18 (Reuters) - Japanese shipbuilding companies have agreed to a 10 percent price rise on Nippon Steel Corp's (5401.T) thick plate, effective Oct. 1, a factor boosting its second-half profit above the company's forecast, an industry source said on Tuesday.

Price hikes on shipbuilding plate and other products starting in the second half and rising export prices have not been taken into account in Japanese steelmakers' profit estimates for the year to March 2008.

The 10 percent rise is seen equalling a 7,000 yen to 8,000 yen ($62 to $71) rise per tonne. The price hike is for a fifth consecutive year.

Demand for thick plate used in ships, construction and other machinery remains tight amid strong economic expansion in emerging markets while the prices of Japanese steelmakers' products are still low compared to foreign rivals.

JFE Holdings Inc (5411.T), the world's third-biggest steelmaker, said in October it was in talks to raise the price of thick steel plate by 15 percent. (Reporting by Yuko Inoue; Editing by Malcolm Whittaker)