Japan Ni Stainless Cold Rolled Price Hits First Increase in 2 Years

Japanese market price of nickel series stainless cold rolled flat steel rebounded in Tokyo and Osaka for the first time in 2 years. The prince increased by 10,000 yen per tonne by end of last week when the dealers tried to increase the reselling price under higher makers’ selling price and normalizing supply balance with lower dealers’ inventory. However, the market is still uncertain when lower Chinese market price could impact on the domestic market.

The market price reached 300,000 yen per tonne for SUS304 base size with 2 millimeters thick at dealers’ transaction around Tokyo. The price is likely to increase more when the dealers try to increase the reselling price toward October to cover the higher makers’ selling price. The dealers’ shipment increased by 20-30% for automobile and appliances from the bottom in May while the construction demand is still very slow.

The market price also reached 300,000 yen per tonne around Osaka. The demand improved for automobile and other industry. However, the slow demand for construction could be hurdle for further price increase.

The dealers’ inventory adjustment almost finished after more than a year of effort for the adjustment. The nickel series stainless cold rolled flat steel inventory held by the processors was 1.46 months of the shipment, which was the lowest level since the start of the statistics start, according to the national processors’ association.

Japanese largest stainless maker, Nippon Steel & Sumikin Stainless Steel (NSSC) increased the selling price to 350,000 yen per tonne for distributors for September order, which increased by total 70,000 yen through the price hikes for 5 months in a row.

The dealers try to pass the higher cost price when many of the dealers are loosing money in monthly basis. However, lower nickel ingot price and slowing Chinese stainless demand could impact on the domestic market.