Stainless Cold Sheet Price to Up by 20,000 yen/t in Tokyo

Market price of nickel series stainless cold rolled flat steel price is likely to increase by 20,000 yen to 340,000-350,000 yen per tonne for SUS304 grade base size around Tokyo. The distributors try to increase the reselling price when the makers increase the selling price to cover higher nickel price at London Metal Exchange. The distributors started the gradual price hike negotiation with users. Japanese largest stainless maker of Nippon Steel & Sumikin Stainless Steel announced on June 12 the firm increases the selling price of the cold flat steel by 30,000 yen to 365,000 yen per tonne for distributors. Nisshin Steel also announced in late May to increase the price by 15,000 yen. The makers increased the selling price by total 75,000 yen per tonne through the every month hike in past 6 months. A Tokyo based distributor said the firm tries to seek to accept higher price for users when the firm cannot pass the all of the higher cost price immediately. Japanese stainless export price keeps increasing. The price jumped by more than US$ 500 per tonne in past 2 months when the supply is getting tight in Asia and especially in China. The hot rolled stainless coil supply is tighter than cold rolled products while Japanese export price of cold rolled sheet exceeded US$ 3,000 per tonne at C&F Japan for SUS304 grade. Japanese distributors’ stainless steel inventory was 107,397 tonnes in May, which represented 1.8 months of shipment, according to national association of stainless coil centers. The shipment increased by around 14% from a year earlier when the demand is firm for applications other than building. The inventory is getting to normal level after the output reduction by makers. However, the wide hikes by makers are tough for distributors when slow building market is the main target for the distributors while domestic demand is firm for automobile and appliances. Japanese stainless steel makers are likely to increase the selling price in July to cover higher nickel price.