NSSC to Set Stainless Bottom Price for January

Nippon Steel & Sumikin Stainless Steel (NSSC) announced on Wednesday the firm revises the alloy link price mechanism for nickel ingot. The firm sets floor price for nickel ingot at US$ 5.18 per pound, which is averaged price in October-November, while the floor price was US$ 3 before. The revised mechanism starts for January pricing. The firm tries to show guidance for the bottom price through the revision.

The firm reduces the nickel series stainless cold rolled flat steel selling price by 50,000 yen to 350,000 yen per tonne for cut edge coil with 2.0 millimeters thick or less for the distributors for December order. The firm basically rejects the order from the dealers, which is the fifth month for the rejection, while the firm will accept marginal supplemental order to secure the dealers’ materials.

The firm reduces the selling price of chrome series stainless cold rolled flat steel by 9,000 yen to 308,000 yen per tonne for distributors for December shipment. The firm reflects the lower chrome price when ferrochrome quarterly purchase price decreased by US$ 0.2 to US$ 1.93 per pound for October-December.

The firm started the alloy linked price mechanism in November 2004 when the nickel price was more than US$ 3 per pound. However, the recent nickel ingot price is less than US$ 5 when the stainless makers reduce the output as much as 50%.