Stainless Steel Sheet Market Price Increasing in Tokyo

Nickel series stainless steel sheet market price maintains upward trend in the beginning of this year around Tokyo. The market price is expected to rise when the supply keeps tight and nickel price is increasing. The market price is around 520,000 yen per tonne for SUS 304 with 2 millimeters thick and seems to surge by 20,000-40,000 yen within January. Nickel price at London Metal Exchange hit record US$ 16.56 per pound on Friday last week, which was US$ 16.04 on Monday and is expected to reach US$ 20. LME nickel inventory decreased to 5,676 tonnes by 84% on Monday from a year ago. World nickel supply is tightening. Japanese stainless steel makers raised their selling prices for distributors due to high nickel price and supply tightness. Nisshin Steel announced on Tuesday last week to raise the selling price of nickel series cold rolled stainless steel sheet by 35,000 yen per tonne for contracts in January-February from November-December 2006. Japanese biggest stainless steel maker, Nippon Steel & Sumikin Stainless Steel is expected to increase the selling price to reflect cheaper yen rate and higher material price than in December. Some dealer sources said their stocks are not abundant mainly for base sized products. Maker source said market inventory should become even lower and the maker is decreasing the shipment against wholesalers. Consequently the supply is expected to keep tight. However, the import products may increase if the supply becomes too tight.