NSSC Raises Stainless Steel Sheet Price for 10 Straight Months

Japanese biggest stainless steel maker, Nippon Steel & Sumikin Stainless Steel (NSSC) announced on Wednesday the firm raises the selling price of nickel series cold-rolled stainless steel sheet and plate for domestic distributors by 35,000 yen per tonne for October contracts from the previous month. The price was increased by 25,000 yen for alloy surcharge and by 10,000 yen for base price. The price for nickel series cold-rolled stainless steel sheet reached 510,000 yen per tonne as a result of NSSC’s continuous hike for 10 straight months. The firm also raises the selling price for chrome series stainless steel products by 10,000 yen per tonne with the active demand for automobile and electric appliances.The firm aims to improve the base price which is the lowest level in the world. Hitoshi Ito, business manager of NSSC, said that the firm would like to respond quickly to market trend changes and that the price hike is necessary to secure profitability when European makers gain high profits.The inventory to shipment ratio of nickel series stainless steel sheet was 1.53 months at Japanese coil centers at the end of August, which became to below 1.8 months that is said as the moderate level, according to Japan Stainless Coil Center Industry Association. The decrease of market inventory is another background for NSSC’s base price hike.The base price of cold-rolled stainless steel sheet is increasing worldwide, mainly in Europe, with the supply tightness. The base price is approaching to US$ 5,000 per tonne in European market, while which reached US$ 4,000 per tonne at export price in Asian market following the uptrend in Europe.Alloy surcharge mainly reflects averaged nickel price in late 2 months. Averaged nickel price in August-September was US$ 13.81 per pound, which increased by about one dollar from July-August or by 25,000 yen per tonne under the effect of cheaper yen.Stainless steel plate demand is strong for energy development projects, such as desalination plants in Middle East. The supply is tight at home and for exports with active demand for shipbuilding and liquid crystal chamber as well. Asian market price is surging when the supply of flat stainless steel is decreasing from Europe.Nickel spot price at London Metal Exchange was US$ 15.56 per pound on Tuesday, which maintained the strong tone. Nickel inventory held by LME decreased by 88% to 4,476 tonnes on Monday from February 2, 2006 due to strong demand for stainless steels. If nickel price stays at the present level, alloy surcharge would additionally increase by 15,000 yen per tonne and NSSC’s selling price could reach 525,000 yen per tonne.