Daido Steel Hikes Ni Series Stainless Wire Rod by 80,000 yen/t

Daido Steel will increase the selling price of stainless wire rod by 80,000 yen per tonne for nickel series products and by 10,000 yen for chrome series products for March order or April shipment. The firm tries to cover higher cost for nickel ingot and nickel series stainless scrap. The firm also considers surcharge price mechanism to reflect cost change timely while the firm recommends chrome series stainless as substitute of nickel series. The firm increases the nickel series products by total 210,000 yen per tonne for the 5 hikes since May 2006 order. The firm increases extra charge by 5,000 yen per tonne for SUS304S and SUSXM grades depending on nickel content. The firm increases the special surface treatment extra by more than 10,000 yen per tonne for nickel series products to cover higher cost for loss materials. The firm already has surcharge system for high nickel containing items. The firm discusses with users for additional surcharge covering. The firm cannot meet some of the orders when the demand is firm for wire drawing makers and cold finishing bar makers. The firm expects the demand keeps firm and nickel ingot cost could worsen profitability when the price at London Metal Exchange exceeds US$ 20 per pound.