Nisshin Steel Cuts Surcharge System Period to Every Month

Nisshin Steel announced on Friday the firm changed surcharge system for alloy price, applying to nickel series cold rolled stainless steel sheets shipped for dealers, to every month effective for October contracts. The firm had applied the system every other month so far. The firm will also cut the period to compute alloy price to 3 months from previous one month, which will reflect material price on selling price timely. Changing margin becomes 5,000 yen per tonne. For example, the firm will change alloy price based on material price fluctuation between 21 August ? 20 September and 21 September ? 20 October, in selling price. The new system cuts delivery period from makers to dealers. Dealers can pass changed purchase price on reselling price by the new system. On the other hand, changing alloy price margin may make impact to makers’ selling price if material price changes drastically. Nisshin Steel said delivery period had been 3 months and the firm could not pass the material price timely with the gap as much as 6 months. The time lag will be closed up by the new system.