Nickel Series Stainless Sheet Price Keeps Flat, Tokyo

The market price of nickel series cold rolled stainless steel sheet keeps flat around Tokyo. Dealers completed the inventory adjustment but their shipment maintains slow. Dealers launched price hike announcement in last autumn and the market entered the upward trend. However, the market price currently levels off at around 310,000 yen per tonne for SUS 304.

Major coil centers’ operating rate is rising month by month around Tokyo, 80% compared with the ordinary level at the end of December. Meanwhile, the demand maintains unfavorable for stainless steel sheet. The domestic demand is forecasted to decreases by 1.3% to 390,000 tonnes for January-March from October-December, according to Ministry of Economy, Trade & Industry.

Averaged nickel price at the London Metal Exchange was US$ 7.74 per pound in December, almost as same as in November. Japanese large dealer source said Japanese export price of nickel series cold products upped by around US$ 200 when Chinese and South Korean stainless users increased their inventories eying high nickel price since the beginning of this year. Another source indicated domestic stainless sheet market price may rise to follow overseas market price.

However, the price upturn is actually hard when the demand is shrinking by 30% compared with the first half of 2008. Dealers’ profitability has worsened. Many dealers got into the red in November 2009 around Tokyo. Some dealers will continue to announce price hike to reach breakeven points within fiscal 2009 ending in March 2010.