Nisshin Steel to Launch New Low Cost Construction Flat Steels

Nisshin Steel will launch new 2 steel sheet products for construction application under higher cost for zinc and nickel. The firm already started test production for colored chrome series stainless flat steel and 100% aluminium coated steel with less coating weight. The firm starts the sales in first half of fiscal 2007 starting April. Higher zinc and nickel cost suffers steel makers and steel using industries. Nisshin Steel expects the zinc and nickel cost increases by 40 billion yen for fiscal 2006 from fiscal 2005. The firm tries to pass the higher cost on the selling price while the firm reduces the production cost. The firm offers wider options for users to avoid the higher cost burden. The firm launches colored chrome series stainless flat steel when nickel series cold rolled flat steel price reached 540,000 yen per tonne under higher nickel price compared with 220,000 yen for chrome series stainless flat product. With the new item, the users can reduce cost for some applications. The firm also markets less coat weight aluminium coated flat steel after zinc ingot price increased to more than 500,000 yen per tonne, which was more than double of that in August 2005, and the zinc price exceeded aluminium ingot price. The firm expects the users can reduce cost with the new product instead of galvanizing steel and galvalume. The firm also tries to expand the sales of the strategic item, zinc-aluminium-magnesium alloy coated steel (ZAM), which has long life and higher corrosion resistance with less zinc coating weight. The firm will increase the sales to construction applications and tries to clear the target of monthly 45,000 tonnes of output by fiscal 2008, half of which the firm tries to sell for construction market. The firm develops the new application for poultry house as a part of the effort. The firm appeals the cost advantage including lower running cost and less zinc usage compared with traditional galvanizing steel and galvalume products.