Firm Stainless Bar Price in Tokyo

Stainless steel bar price is firm at 470,000 yen per tonne for SUS304 grade base size and 290,000 yen for SUS403 around Tokyo. The demand is firm as plate products. The price is likely to keep firm when makers could increase the selling price to cover higher nickel cost. Some buyers try to secure materials to build inventory. A distributor source said the demand will keep firm even if nickel price would increase when the demand is mainly for materials for production equipments. However, the distributors cannot pass all of higher cost price on the reselling price under aggressive hike by makers. The distributor realized only half of makers’ hike. The distributor source said they cannot increase reselling price at the pace as makers when makers’ contract price is cheaper than distributors’ selling price. Nickel price increases again in August at London Metal Exchange though the price dropped temporally since mid-July. The price is US$ 12.7 per pound on August 2 compared with averaged US$ 12.1 in July. The stainless makers could increase the selling price again to cover the higher cost.