Stainless Steel Sheet Market Price Keeps Strong in Tokyo

The market price of stainless steel sheet is strong for both nickel and chrome series. The price is around 350,000 yen per tonne for base sized products of SUS 304 and around 210,000 yen per tonne for SUS 430 in Tokyo.

The price for nickel series stainless steel sheet was continuously raised up by Japanese stainless steel makers in the first half of 2006 thanks to the surging nickel price at London Metal Exchange. Japanese largest stainless steel maker, Nippon Steel & Sumikin Stainless Steel raised the selling price by total 65,000 yen per tonne since the beginning of 2006. Nisshin Steel raised the selling price by total 70,000 yen during January-July. Both makers raised their prices along the surcharge price system.

Stainless steel sheet market is under the influence of Japanese makers’ output reduction, the advance of the inventory adjustment at the dealers and the soaring nickel price. The domestic supply became even tighter thanks to the trouble of hot-rolling mill at POSCO and the high growth of stainless steel prices in Asian market.

The demand for chrome series products was also active mainly for automobile and electric appliances in the first half of 2006. The demand is likely to become stronger in and after autumn. Japanese makers’ purchasing price for ferrochrome increased by US 80 cents per pound for July contracts. Some consumers are using chrome series products shifting from nickel series.

The makers could raise the selling price for chrome series products. JFE Steel already raised the selling price for chrome series stainless steel sheet by 10,000 yen per tonne for September contracts at the beginning of August. NSSC and Nisshin Steel may also increase their selling prices.

The inventory to shipment ratio was 1.58 months for stainless steel sheet including both nickel and chrome series at Japanese coil centers in June, which hit the lowest level in 2 years, according to Japan Stainless Coil Center Industry Association. Japanese import of cold-rolled stainless steel sheet decreased by 39% to 3,973 tonnes at the end of May.

Stainless steel sheet demand seasonally increases in autumn. The supply would become much tighter than present with expectation the market price would surge more.