NSSC Raises Stainless Wire Rod Price by 5,000-10,000 Yen/t

Nippon Steel & Sumikin Stainless Steel Corporation (NSSC) announced on Thursday the firm raises the selling price of stainless steel wire rod for some grades and types for March-May contracts. NSSC raises the price by 5,000 yen per tonne for SUS304J3 and SUS309S while the firm increases the price by 10,000 yen for SUSXM7, SUS316, SUS303CU and SUS310S. The firm sets the price unchanged for SUS304, SUS430 and SUS410.

This is the regular price revision to reflect the cost fluctuation of base metals during the previous 3 months. The selling price of each alloy grade and type is decided along the 3-month average price of base metals. For March-May contracts, NSSC raises the price for the alloys highly containing nickel, molybdenum and copper.

Stainless steel wire rod demand has gradually recovered in domestic and offshore markets thanks to the output increase of automobiles, electric appliances and electronic components. NSSC’s production of stainless steel wire rod is recovering to 90% level compared with the peak for April-September 2008. NSSC’s Hikari works in Yamaguchi Prefecture, Japan keeps 80% operation since October-December 2009. The production became especially active in and after January.

Stainless steel wire rod demand is favorable from domestic market and secondary processors in Asia. The supply is likely to tighten more when NSSC schedules a regular maintenance of the wire rod plant in late April.