Rising Ni Stainless Cold Sheet Price in Tokyo

Nickel series cold rolled flat stainless steel market price is increasing by 5,000 yen to 310,000 yen per tonne for SUS304 base size around Tokyo compared with mid November. Dealers’ spot reselling price mostly exceeds 300,000 yen per tonne. Dealers are raising the reselling price to reflect makers’ price hike. The reselling price surged by 30,000-40,000 yen from the bottom. The market price is expected to continue upward trend.

A middle dealer source said they need additional price hike with little profit. Dealers are turning into the black in or after October. However, there is price gap between imported products and domestic products. The dealer source said they should compete with cheaper imports by quality or delivery.

Major coil centers’ operation rate rebounded to over 70% compared with normal month but doesn’t return to full. Some coil centers’ operation rate for automobiles is higher than other coil centers’ for building materials. Coil centers’ operation rate for building materials is around 50% compared with normal month and expected to keep the same level within this year with low housing starts in Japan.

A major dealer source said dealers can’t pass 50% of higher purchasing cost on the selling price. Dealers will continue to appeal price hike. The supply and demand balance is tight with low market inventory. A large dealer said price hike may not be approved with low demand.