Daido Steel to Raise Stainless Steel Wire Rod by 80,000 yen/t

Daido Steel, Japanese major special steel maker, increases the selling price for nickel series stainless steel wire rod by 80,000 yen per tonne for base sized SUS304 grade products for December contracts and January shipment. The firm passes the higher costs on the selling price when nickel price increases and foreign exchange rate of yen become cheaper. The firm also raises extra charge for nickel containing stainless steels. For example, the selling price of SUSXM7 wire rod increases by total 100,000 yen per tonne, 20,000 yen of which is extra charge. Daido Steel has raised selling price for nickel series wire rod 4 times and by total 210,000 yen per tonne since May 2006.Domestic demand is active from steel wire makers and cold finished steel bar makers. The supply is tight when Daido Steel carried out seasonal equipment maintenance in spring and autumn. The firm continues high operation.Daido Steel will negotiate with users individually about unprofitable items, which provides consultation to switch from nickel series products to other materials such as chrome series for some users who cannot raise reselling price enough. The firm proposes value analysis to users as well.Supply of nickel series stainless steel wire rod is also tightening in Asia. Export price is rising earlier than domestic market price, which reached to US$ 5,000 per tonne for some items.Daido Steel adopted material surcharge system for some automobile related users. However, the firm said the system is difficult to be accepted by all users.