Stainless Steel Sheet Price Increases in Tokyo

The market price of stainless steel sheet is increasing for nickel series around Tokyo thanks to the makers’ price hike for their products under high nickel price. The market price is 320,000-330,000 yen per tonne for base sized SUS 304 sheet and 200,000-210,000 yen per tonne for base sized SUS 430 sheet.Monthly average of nickel price at London Metal Exchange (LME) was US$ 9.56 per pound in May, increasing by US$ 1.4 from April. The price maintains strong in June, which was US$ 10.1 on June 1.Trading house source prospects LME nickel price would drop to around US$ 8 after the settlement of labor negotiation at Inco in Canada, while steel maker source said the price would stay at US$ 9-10 within half year to September 2006 when Chinese nickel demand maintains strong and nickel stocks held by LME halved to the level in December 2005..Nisshin Steel and Nippon Steel & Sumikin Stainless Steel Corporation (NSSC) adopt surcharge system for their stainless steel sheet selling price against dealers and distributors, along which the firms decide their selling prices based on averaged nickel price during previous 2-3 months. NSSC could raise its selling price by 10,000-20,000 yen per tonne in June along the system. Dealers expect to pass the increase of cost price on their reselling price.