Nisshin Steel to Hike Ni Series Cold Rolled Stainless by 90,000 yen/t

Nisshin Steel announced on Tuesday the firm increases the selling price of nickel series stainless cold rolled flat steel by 90,000 yen per tonne for SUS304 product with 2 millimeters thick for distributors for May-June order. The firm tries to cover higher cost under surging nickel ingot price. The hike is 8th straight increase since March-April 2006 order and the firm increases the price by total 405,000 yen. The firm also increases the chrome series cold rolled steel price by 10,000 yen for SUS430 under tight supply. The nineteen thousand yen hike for nickel series stainless is the widest increase for the firm since the firm introduced nickel ingot linked price mechanism in March 2006. Higher nickel cost lifts the stainless price. Nickel ingot price was averaged US$ 20.83 per pound in February-April at London Metal Exchange compared with US$ 17.02 in 3 months average through February 2007. The firm tries to pass the higher cost along with the higher yen value under the lower yen rate. The chrome series stainless demand is firm for automobile when automakers increase the export. Nisshin Steel increases the selling price by 10,000 yen per tonne when the firm manages to meet the higher demand. The firm expects the nickel series price could increase by another 60,000 yen per tonne for July-August order if the nickel price would keep the level. The firm concerns the users could shift to other materials to avoid the extremely high stainless price. The firm will reject some part of the order for nickel series items from distributors for May order as April. The firm tries to keep the distributors’ inventory level and is cautious oversupply. The firm tries to keep watching market condition including coil centers’ inventory level and to keep lower level supply to distributors for June order.