NSSC Raises Ni Series Flat Stainless Base Price in September

Nippon Steel and Sumikin Stainless Steel (NSSC) announced on Thursday the firm raises the selling price of nickel series stainless plate and cold rolled flat steel by 10,000 yen per tonne for domestic distributors for September order and shipment. NSSC raises the base price though the supply and demand balance maintains easy. Meanwhile, the firm reduces the alloy charge by 20,000 yen per tonne. Thus the contract and shipment price will down by 10,000 yen as total. The price of chrome series cold rolled flat steel was unchanged at 270,000 yen per tonne.

The new price is 355,000 yen per tonne for nickel series cold rolled flat steel with 2 millimeters or less thickness. This is the yearly lowest price though the base price is hiked for the first time since April shipment. NSSC judged the base price hike is necessary to sustain stable supply under ultra-high yen trend. However, distributors are likely to show disapprovals against the base price hike when they are suffered from stagnant sales and forced inventory adjustment.

NSSC’s sales officer explained the firm’s export volume has dropped by around 60% since April-June along very strong yen trend. He said NSSC’s profitability is quietly severe especially for export of common grade products such as SUS304 and SUS430 to Asia. Meanwhile, Japanese import of cold rolled stainless flat steel approached 7,000 tonnes in July. NSSC cautiously watches the import volume increase and the impact on domestic market price.

Orders for stainless plate are also concerned to slow down along strong yen trend. Domestic distributors’ shipment had kept 9,000-10,000 tonnes per month until June but declined to 7,000-8,000 tonnes in July. Electricity supply regulation impacted operations of shearing processors while the demand leveled off from vacuum chamber makers.