Sumitomo Metals Naoetsu Raises Stainless Shape by 15%

Sumitomo Metals Naoetsu, Japanese stainless steel maker, announced on Thursday the firm raises the selling price of shaped stainless products, including angle, channel and H-beam, by 15% for August contracts. The firm will pass high productive costs on the selling price. Nickel market price has risen since April. This is the first price hike since May 2008. The firm may implement additional hike in September when ferrochrome price is also rising.

The firm adopts alloy surcharge system for stainless sheet products to pass material costs on the products. However, the firm hasn’t entirely adopted the surcharge system for shapes.

Nickel price is lower by 30% compared with August 2008 while rose since April 2009. The cost up exceeds the firm’s cost cut. The firm decided the price hike to refrain from loss by high nickel price.

Nickel price at London Metal Exchange was US$ 8.85 per pound on Wednesday, which surged by US$ 3.78 of average price in April 2009.