Japan Ni Stainless Cold Rolled Export Hits US$ 3,100/t

Japanese export price of nickel series stainless cold rolled flat steel increases gradually for Asian market. The price reached FOB US$ 3,100 per tonne for coil with 2 millimeters thick for April-May shipment, which reached US$ 3,000 for the first time in a year. Some makers offer more than US$ 3,300 to reflect higher nickel cost. A maker source said the price reflects US$ 9 per pound of nickel cost and will reflect US$ 10 of nickel form now. The export price could exceed the domestic market price under slow domestic demand.

Stainless makers in China, South Korea and Taiwan apparently keep full capacity operation. A source in Japanese stainless maker said Chinese stainless makers’ production will be more in 2010 than record 8.8 million tonnes in 2009 under the strong domestic demand.

The export price of US$ 3,100 per tonne would exceed 300,000 yen per tonne of domestic market price. A Japanese dealer source said the Asian price should increase more to reflect higher cost for nickel, chrome and other steel making raw materials while the domestic market price couldn’t increase under slow demand.

Japanese stainless maker’s output increased by 12.8% to 44,000 tonnes for Nippon Steel & Sumikin Stainless Steel (NSSC) and by 6.1% to 52,000 tonnes for Nisshin Steel in February from January. The output was 4 times for NSSC and 2.3 times for Nisshin Steel compared with a year earlier when the export was strong for chrome series cold rolled flat steel in automobile applications. A source in domestic maker said the demand recovery is mainly for export and the maker focuses on high valued products, not commodity grade nickel series products.

Japanese stainless steel makers are still cautious for speculative order despite of the price increase. The makers try to focus on high valued products while they try to reduce the cost and improve the productivity for commodity grade products.