NSSC Changes Pricing Period of Alloy Rink System

Nippon Steel & Sumikin Stainless Corporation (NSSC) announced on Wednesday the firm revised alloy rink system for stainless steel cold sheet and plate for domestic dealers. The firm shortens the delivery lead time from contracts to shipment to 15-30 days from previous 60 days. At the same time, the firm reflects the material price fluctuation for stainless cold sheet using the indicator of one-month average before the contract month, though the firm has adopted 2-month average. The firm can reflect material price change more flexibly. As to stainless plate, the firm reflects the material price as of the timing of contracts and reviewed the base price.

NSSC explained dealers can reduce risks of inventory evaluation loss by the new price system regardless of nickel market price up and down. Dealers should become to pass raw material cost fluctuations on the reselling prices more rapidly then ever. Another background is that offshore stainless market price makes an impact on Japanese market and NSSC’s conventional alloy rink system cannot response to the quickly changing offshore market.

NSSC started alloy rink system for dealers in November 2004. Offshore stainless makers tend to reflect material price fluctuation on the selling price in a short time when raw material price became to up and down more roughly than ever.