Nisshin Steel Hikes Stainless Cold Sheet by 15,000 yen/t

Nisshin Steel announced on Wednesday the firm increases the selling price of cold rolled stainless sheet by 15,000 yen per tonne for distributors for May-June order or July-August shipment. The firm passes the higher nickel cost based on change between average in December-February and average in February-April. The firm also started price hike negotiation with contract users from April trying to hike by more than 40,000-50,000 yen for June-July shipment. The hike for distributors follows 20,000 yen per tonne hike in March. The firm will hike the price based on the nickel price gap between averaged US$ 6.49 per pound in December-February and US$ 7.23 in February-April. The firm tries to cover the higher cost price through the hike when the demand is firm in distributors’ market. The firm is still cautious to avoid overstock again though some distributors would try to build inventory. The firm tries to pass the higher cost price on the contract price. The firm will increase the price by 40,000-50,000 yen per tonne based on nickel price at US$ 9 per pound in May compared with US$ 8 in April. The firm continues output reduction at cold rolling mill in Shunan works while the firm operates the hot strip mill at full capacity under the tight supply in export market. The firm expects the export price could increase by around US$ 300 for July shipment from US$ 2,500-2,600 for June shipment when the market price is as high as 27,300 yuan per tonne in May. The market price could increase both at home and abroad when market increases the expectation for higher price under the firm demand.