Nisshin Steel Hikes Ni Series Stainless by 65,000 yen/t

Nisshin Steel announced on Friday the firm increases the selling price of nickel series stainless cold rolled steel by 65,000 yen per tonne for SUS304 grade product with 2 millimeters thick for distributors for March-April order. The firm increases the chrome series products base price by 10,000 yen for SUS430 grade. The firm also starts the price hike negotiation with contract users to increase the SUS304 cold rolled stainless flat price by around 80,000 yen per tonne for April order to pass the higher nickel cost. The firm increases the nickel linked price by 55,000 yen per tonne and the base price by 10,000 yen for distributors. The nickel series price hike is total 315,000 yen per tonnes through the 7 times of hikes in a row since March-April order in 2006. The firm increases the chrome series price to improve the relative low price under firm demand for automobile. The chrome series hike is total 40,000 yen per tonne in the year to March 2007. The firm tries to increase the contract price in coming negotiation to improve the lower price than price for distributors. The firm also seeks 40,000 yen per tonne hike for chrome series products for contract users. The firm expects the users could accept the market condition. The firm tries to cover higher nickel cost through the price mechanism, in which the firm reflects the price change of nickel between US$ 15.03 per pound of October-December average and US$ 17.02 of December-February average, when the ingot price surges at London Metal Exchange. The firm also reflects the change of lower yen rate. The firm is still cautious for extremely higher nickel price while the firm expects the users shift to chrome series products and carbon coated steel products mainly for construction materials.