Higher Nickel Price to Lift Japan Stainless Price Again

Japanese stainless steel makers are likely to increase the selling price to cover higher nickel cost when nickel price increases again. Nickel price is approaching to record US$ 11 per pound as of Thursday. With makers price hike, Japanese stainless steel distributors cannot pass all of the higher cost price though they try to increase the reselling price since March. They increased the reselling price by 20,000 yen to 330,000-340,000 yen per tonne for nickel series stainless sheet in early July. The distributors keep watching makers’ another hike. Nickel price increased to US$ 10.98 per pound at London Metal Exchange on Thursday after on Tuesday the price renewed former record of US$ 10.48 on May 31. The price increases again after the price dropped to US$ 8.44 on June 13. Nickel price increases apparently due to fire at Indonesian plant of Canadian Inco’s subsidiary in late May and mega acquisition of Inco and Falconbridge of Canada by US miner Phelps Dodge. LME nickel inventory was 9,258 tonnes on July 4, which decreased by 74.3% from January 3. Nickel supply is tight while stainless steel supply also tight. Speculators apparently focus on the supply balance lifting the market price.