Japan Stainless Cold Coil Export Price Hits US$ 3,000/t

Japanese export price of nickel series stainless increased to more than C&F US$ 3,000 per tonne for cold rolled coil for the first time in 11 years. The price keeps increasing under surging nickel price at London Metal Exchange and tight supply of hot band due to prolonged maintenance outage of POSCO’s hot rolling mill after the price increased to US$ 2,600 in mid-March for April shipment. The export price reached US$ 3,100-3,150 per tonne for July-August shipment. A source of trading firm said Japanese makers have no room for additional order until July shipment and their limited offer is filled immediately. The export price is likely to increase more when Chinese inventory decreases rapidly and Chinese buyers expect higher price along with record high of nickel price. Japanese export price reached US$ 3,000 per tonne temporally in the past but the price decreased soon with reluctant buying. A trading firm source said the price could increase more this time when record surging nickel cost lifts the stainless price. Japanese stainless steel makers including Nippon Steel & Sumikin Stainless Steel could reduce the output reduction rate from current 20% down for the capacity.