JFE Steel Increases Chrome Series Stainless Sheet Price by 5%

JFE Steel, Japanese major integrated steel maker, announced on Wednesday the firm raises the selling price of chrome series stainless steel sheet for domestic distributors by about 5% or 10,000 yen per tonne in September order or November shipping, which is the first increase since April 2005. The firm will pass the increasing material price on the selling price. Already, the firm is starting the price hike negotiation with contract users. The firm tries to encourage the users to use more chrome series stainless from higher priced nickel series products. The firm’s stainless steel sheet department produces only chromate series products. The firm’s selling price is stable compared with nickel products price. Because iron ore price or ferrochrome price increased, the firm will reflect the increasing production cost in the firms selling price.The supply and demand of chrome and nickel series stainless products is tight in Japan. The firm’s production doesn’t catch up with the demand, but the firm is corresponding by full operation. Tatsuhiko Tasaka, the firm’s stainless and special steel business manager, said that his firm’s shipment of chrome series products is rising by about double in this year from a year ago due to higher price of nickel products, and some user could shift to chrome series products from nickel series products. The order of chrome series products is increasing rapidly from this spring from Asia. The export price rose to US$ 1,300 per tonne. The firm stopped accepting order from Asia because the firm’s production is limited now. The export price is expected to rise more. The demand for contract users is strong mainly for automobile. Consequently, the firm is starting the price negotiation for contract prices individually. The firm plans to expand the sales of chrome series products which are cheaper than nickel series.