Ni Series Stainless Sheet Price Expected to Rebound around Tokyo

Market price is expected to upturn for cold rolled nickel series stainless steel sheet around Tokyo. The price recently keeps flat with potential decrease while Japanese and offshore stainless steel makers currently announced the price hike to reflect material cost upsurge. The market price is expected to increase by around 10,000 yen per tonne toward March from present 290,000 yen for SUS304.

Nippon Steel & Sumikin Stainless Steel Corporation, Japanese largest stainless steel maker, raised the sales price by 10,000 yen for nickel series cut edge coil for February contracts, This is the first price hike since May 2011. Nippon Metal Industry also announced the price hike of all products for domestic dealers by 20,000 yen effective for February contracts. Dealers would start price hike announcement in March to follow the makers’ hike.

Nickel price hit bottom in November 2011. Japanese stainless industry is said to suffer cost up by 20,000 yen per dollar of nickel price upsurge. All Japanese stainless steel makers would post half-year loss in the term from October 2011 to March 2012 when stainless steel market price is too low against current nickel price.

One dealer source said dealers’ sales volume levels off at 90% against the ordinary level while the reselling price is very low. Many dealers have suffered worse profitability since October. The shipment has slightly recovered since December. Major coil centers suggest price hike to improve their profits.