Nisshin Steel to Increase Stainless Cold Rolled Sheet Price by 10,000 yen in November

Nisshin Steel increases the spot price of nickel series and chrome series stainless cold rolled steel sheet price by 10,000 yen per tonne for dealers for order in November, announced on Wednesday. The firm pass the higher material cost on the selling price. The firm has increased nickel series price by 60,000 yen per tonne since order in August.

Nisshin Steel explains that the firm has completed price hike doe dealers for October-December. However, the firm plans to increase the base price to reflect the cost increase except material while maintains the price with alloy surcharge system.

The firm tries to increase the price for contract users, which accounted for 70% of stainless steel shipment, for October-December.

Operation rate of cold rolled stainless steel at Shunan works is improving against the production capacity for October-December. The firm adjusts the date of some deliveries when the order for automobile is firm. However, the firm explains the output would decrease for January-March 2010 when the demand after December is unforeseeable.

The order for cold rolled recovered to the normal level at 80% for August-October compared with the peak level. On the other hand, the inventory rate is 1.4 months of shipment in the market, is balanced to current dealers’ order receipt while in ordinary circumstances. The rate is tight compared to shipment. The firm considers the order receipt volume when the import is increasing.

Inquiries from overseas re-rollers are firm. However, the export price decreased. The firm restricts the order receipt.