Stainless Dealers Raise Reselling Price in November

Stainless steel dealers will raise reselling price of nickel series stainless steel products, including sheet, welded tube, bar and plate, around Tokyo. The market price is recently surging to 310,000 tonnes for cold rolled stainless steel sheet of SUS304, which is expected to rise more in November. Stainless steel makers are increasing the selling price due to high material costs. The market price would keep upward within this year.

A large dealer source said they raised reselling price of stainless steel sheet by 20,000 yen per tonne from August and the hike can penetrate since supply and demand balance is very tight.

Market inventory of stainless steel sheet increased to 65,313 tonnes in September in all Japan, which increased for the first time in late 16 months. Meanwhile, dealers’ sales increased by 5.7% in September from August. Then the inventory rate lowered to 1.32 months of shipment in September from 1.98 months of March 2008, according Japan stainless steel dealers’ association.

Dealers will sustain the inventory level though the supply is tightening. A large dealer source said they are afraid of profit drop caused by low inventory evaluation. Dealers expect the price hike could be approved if the inventory keeps tight. They will raise reselling price in November to gain profit for a fiscal year ending in March.