NSSC to Introduce Alloy Link Mechanism for Wire Rod

Nippon Steel & Sumikin Stainless Steel (NSSC) said on Wednesday the firm is planning to introduce alloy link price mechanism for stainless wire rod for domestic shipment as early as May 2007. The firm is designing the system. The users of wire makers could resist the move though NSSC will negotiate with the users. NSSC revises the price mechanism for each wire rod item to cover higher cost for raw materials. The firm said the firm reviews major 35 wire rod items and around 60 items in subcategory. The firm didn’t introduce alloy link system for wire rod when the firm sells almost all wire rod items in contract base. The firm said around 65% of the users support price revision in every 3 month though the firm considers alloy link, which reflects price change of raw materials automatically, is better. However, the alloy link needs complicated system without confusion for many items. The firm tries to find the solution for the new system. The firm said the previous 90,000 yen per tonne of hike was accepted by almost all contract users and automakers understand the higher prices.