Flat Stainless Plate Price in Tokyo

Stainless steel plate market price is flat at 710,000 yen per tonne for SUS304 hot strip mill products, 810,000 yen for SUS304 plate mill products and at 1.2 million yen for SUS316 plate mill products around Tokyo. The price could peak at the level under plunging nickel ingot price though the distributors try to pass the higher cost price for the existing inventory. The buyers are reluctant to buy the materials when nickel ingot price decreased by around 40% from the peak despite of the tighter plate supply in Japan. Nippon Steel & Sumikin Stainless Steel announced the 10% output reduction in July at plate mill in Yawata works to reduce the distributors’ inventory. Nickel ingot price was averaged US$ 14.50 per pound, which was US$ 4.42 lower than June average. The drop represents around 90,000 yen per tonne of lower cost for 8% nickel stainless products. The makers could reduce the selling price by such amount through the surcharge pricing mechanism. Many stainless distributors couldn’t pass the higher cost price on the reselling price even for May order of the makers. With the higher cost price than the selling price sales, the distributors try to increase the reselling price earlier. However, the effort could fail under much lower nickel price.