NSSC to Hike Ni Stainless Plate and Cold Sheet by 10,000 yen/t

Nippon Steel & Sumikin Stainless Steel (NSSC) announced on Monday the firm increases the selling price of nickel series plate and cold rolled sheet by 10,000 yen per tonne for domestic distributors for July order to cover higher nickel cost. After the hikes for 7 months in a row, the cold sheet price reaches 375,000 yen per tonne including alloy linked price and base price for cut edge coil. The firm left the chrome series stainless price unchanged. The firm will keep the 20% output reduction for the capacity at Hikari plant until September to meet relative slower demand though the distributors’ inventory decreases and has some stock out sizes. The firm indicates the firm would increase the base price for August order under the improving supply balance. The alloy linked price is based on averaged US$ 9.49 per pound of nickel price in May and June. Nickel price at London Metal Exchange rebounded to averaged US$ 9.41 in June after the drop to US$ 8.44 on June 13. The LME price increased to record US$ 11.57 on July 7. Japanese demand of nickel series stainless steel is firm when the buyers try to build inventory with expectation of higher price. NSSC expects the Asian supply could get tighter toward the demand season when European supply to China will decrease more due to fire damage for European major maker. Chrome series stainless supply is tight and the price increased by 20-30% despite of the full capacity cold rolling operation at Kashima plant, NSSC said. The firm indicates potential price hike for the products in and after August depending on the market. The firm also increases the nickel series mid-sized and heavy plate price by 10,000 yen per tonne for July order. The demand is firm for domestic vacuum chamber of liquid crystal panel television, liquid natural gas industry in Middle East and chemical plant in Southeast Asia, NSSC said. The firm tries to keep the full capacity operation at plate mill of Yawata plant to meet the firm demand.