Nisshin Steel Reduces Ni Stainless Cold Flat Steel by 5,000 yen/t

Nisshin Steel announced on Tuesday the firm reduces the selling price of nickel series stainless cold rolled flat steel by 5,000 yen per tonne or around 1% for distributors for January-February order from November-December level. The firm reflects current raw materials price and foreign exchange rate. The firm reduces the price by total 210,000 yen through price drops for 3 consecutive terms since September-October. Nisshin Steel revises the selling price in every 2 months and announces the price change including change of raw materials cost and base price. The firm said the new price reflects the condition change when nickel ingot price at London Metal Exchange decreased from averaged US$ 13.34 per pound in August-October to US$ 13.25 in October-December along with higher yen rate. Nisshin Steel said the order receipt dropped by more than 60% for December from a year earlier though the firm reduced the order receipt intentional from some buyers. The firm sees the kitchen and construction materials demand is very slow due to very slow building activity and changing demand structure. The firm expects the slower demand could continue through first half of 2008 with current very slow building start clearance activity. The firm also said the firm studies potential price hike for base price of chrome series stainless cold rolled flat steel for February order or April shipment. The firm tries to improve the profitability to cover higher cost for materials and energy.