Ni Stainless Cold Flat Steel Price Hits 28-Month Low in Tokyo

Market price of nickel series stainless cold rolled flat steel decreased to 380,000-390,000 yen per tonne for SUS304 grade at the dealers’ site around Tokyo. The price decreased to less than 400,000 yen for the first time since August 2006 due to lower nickel ingot market. The stainless products’ price is expected to decrease more due to lower demand and raw materials price.

Nickel price keeps decreasing and is expected to decrease more. The price was US$ 13.9 per pound in August 2006 when the stainless price increased under tight supply and lower dealers’ inventory level.

The dealers’ transaction is very thin more than normal yearend period. A dealer source said the stainless market price couldn’t stop decreasing until nickel price hits bottom. Other market interest said some dealers liquidate the inventory even at much lower than the cost price to secure working capital for settlement toward yearend.

The dealers’ inventory decreased by 22.2% to 56,873 tonnes in October from a year earlier, according to national stainless coil centers’ group. The supply balance is getting better than before. However, the lower nickel price pressures on the stainless market price.