NSSC to Raise Stainless Wire Operation Rate

Nippon Steel & Sumikin Stainless Steel (NSSC) increases the production level of stainless wire rod gradually, said on Wednesday. The firm increases the operation rate to around 60% of the capacity at Hikari plant in the month while the operation increased to 50% level from the bottom of less than 40%. The firm eyes 70% operation by September. The firm recognizes inventory adjustment in the domestic market but the firm increases the production cautiously depending on the market condition.

The firm said the end users’ demand level is still low level but the shipment of material for automotive spring improves since early May when the processors’ inventory is adjusted. The firm sees the demand level recovered 50-60% of normal level while the demand was as low as 10-20% of normal level. The firm said some parts makers submitted emergency order while the lot is as small as several tonnes. The firm increases the rolling operation days in and after June. Offshore market is already improves in volume when nickel price hit bottom.

The firm announced on Wednesday the firm increases the selling price of stainless wire rod by 10,000 yen per tonne for SUS304 products for June-August order from March-May order. The increase is the first hike in a year due to higher raw materials cost in recent 3 months.

The firm revises the grade extra charge depending on nickel and alloy contents. The firm increases the charge by 15,000 yen per tonne for SUS304J3, SUSXM7 and SUS316 and by 30,000 yen for SUS310S. The firm keeps the charge for chrome series stainless products.

The firm increases the selling price when nickel ingot price increased to US$ 5.06 per pound in March-May, which was US$ 0.31 higher than the level in December-February. Nickel price recovered averaged US$ 5 since April while the price dropped to less than US$ 5 in February and March from averaged US$ 5.15 in January. The firm also reflects lower yen rate, which was 98.79 yen per US dollar in March-May, which was 6.33 yen lower than the level in December-February.