Japan: Nippon Steel raises prices for nickel cold sheets

Nippon Steel Stainless Steel is set to implement its first price hike in nine months for nickel-based cold-rolled sheets sold in stores, with a JPY 20,000/t ($135/t) increase slated for March 2024. This adjustment comprises a JPY 5,000/t ($33/t) raise in alloy prices, mainly influenced by foreign exchange rates, and a JPY 15,000/t ($101/t) increase in base prices, marking the first such adjustment in a year and a half since September 2022.

Factors such as sustained high prices of main and auxiliary raw materials, alongside escalating costs for materials and equipment, as well as structural expenses like labour and logistics, necessitate this adjustment, which will reflect in product prices. Similarly, the base price for chromium-based cold-rolled thin sheets and thicker variants will see a JPY 15,000/t ($101/t) uptick.

Despite some automakers experiencing production slowdowns, January statistics from the National Stainless Steel Coil Center Manufacturers Association revealed a rebound in daily sales volumes, buoyed by increased demand for housing-related equipment, supported by energy-saving initiatives from the Ministry of Economy, Trade, and Industry, as well as a recovery in semiconductor-related products.

Sheet plant operations are expected to hover around 70% capacity from January to March 2024, with forecasts indicating an upward trajectory in the following quarters, peaking in the July to September period.

Regarding imported cold-rolled steel products, concerns are raised about their consistently high arrival and pricing levels in January, which are perceived to be below fair market rates. This situation has led to losses for Japan's stainless steel industry in terms of both quantity and pricing, prompting considerations for seeking redress through appropriate channels, including WTO regulations and domestic laws.