NSSC Raises Stainless Steel Coil Price by 15,000 Yen/t

Nippon Steel & Sumikin Stainless Steel Corporation (NSSC) announced on Monday the firm raises its selling price of nickel series cold-rolled stainless flat steel by 15,000 yen per tonne for May contracts between domestic dealers from the previous month. The firm passes surging nickel price on the selling price, which was averagely US$ 7.45 per pound in current 2 months, based on price mechanism which reflects material price fluctuation such as chromium and nickel. NSSC’s selling price will become to 335,000 yen per tonne for cold-rolled stainless steel sheet, while NSSC leaves the base price and chromium series prices unchanged. The selling price for domestic dealers seems to be raised again next month. The firm also decided to raise the selling price for large contract users by 15-20% for May contract and July shipment from the recent price.The firm added surging material costs on its selling price for 5 straight months since January and the price increased by total 45,000 yen from December 2005, when nickel price at London Metal Exchange (LME) continues increasing since November 2005. LME nickel price was US$ 9.56 per pound on May 19 under tight nickel supply and surging non-ferrous markets with the inflow of speculative funds. LME nickel inventory decreased rapidly from 35,742 tonnes at the end of December 2005 to 26,994 tonnes at the end of April.Asian stainless steel makers tend to pass increasing nickel cost on their selling prices. NSSC plans to keep operation at Hikari works at 80% level of full capacity in order to continue output control to the level balanced with market demand. An official of NSSC said that speculative purchasing is increasing in the market and the firm expects to establish the price mechanism among dealers and distributors, though the firm must raise the price much.