NSSC to Reduce SUS304 Stainless Wire Rod by 45,000 yen/t

Nippon Steel & Sumikin Stainless Steel Corporation announced Monday that the firm reduces nickel series stainless wire rod price by 45,000 yen per tonne for SUS304 for September-November order compared with June-August. The firm reduces the price to reflect lower nickel price while the firm revises the extra charge for grades depending on the alloy contents. The firm tries to keep watching the market trend under slowing economy while the firm keeps adjusting the production to meet the slower demand level. The reduction is the first drop in 2 periods since March-May order. The firm leaves the price of chrome series products unchanged. Averaged nickel price was US$ 12.96 per pound and it decreased to US$ 9.32 per pound in June-August at London Metal Exchange, which was lower than US$ 12.96 in March-May. Foreign exchange rate of yen was 108.7 yen per US dollar in June-August compared with 103.56 yen in March-May. The firm reflects the change for the selling price. Chrome price was averaged US$ 2.09 per pound in June-August compared with US$ 1.76 in March-May. However, the firm keeps the chrome series stainless rod price when the firm already reflected the higher chrome cost for the selling price. The firm sees domestic market of stainless wire rod is stable except for building application after the market experienced inventory adjustment since the spring. However, the firm expects the demand could decrease for automobile in second half of fiscal 2008 starting October and the firm tries to find the impact on the wire processors.