Nickel Stainless Cold Rolled Price to Rebound After 2 Years Drop

Nickel series stainless cold rolled flat steel market price shows sign to rebound in Tokyo and Osaka when the dealers try to increase the reselling price under makers hike, higher nickel price and higher Asian stainless market. The supply balance gets tighter when the dealers’ inventory at end of June decreased by 36.7% from a year earlier level. The market price could increase in the month for the first time in 2 years.

The market price is around 280,000-290,000 yen per tonne for SUS304 product with 2 millimeters thick around Tokyo. The price is expected to increase in and around end of August.

Japanese coil centers’ nickel series stainless cold rolled flat steel inventory decreased by 36.7% to 39,019 tonnes at end of June from a year earlier level, according to the association. Some dealers have some stock out sizes after the inventory adjustment. Their sales volume in June increased by 20.8% to 24,645 tonnes from May while the volume was 18.1% lower than June 2008.

The makers try to pass higher raw materials cost on the selling price. Nippon Steel & Sumikin Stainless Steel increased the price to 335,000 yen per tonne for nickel series cold rolled flat steel with 2 mm thick for August order totaling 50,000 yen increase in 4 months.

The dealers try to pass the makers’ hike on the reselling price. A dealer source said the firm tries to increase the reselling price by 20,000 yen per tonne by September as the first step while some industry interests expect the price increase could take more time under slow demand.