Japan: Nippon Steel Stainless Steel to raise Ni-based CR sheet priced for June on raw material cost surge

Nippon Steel Stainless Steel is set to increase the selling price of nickel-based cold-rolled sheets for retail sales in June by JPY 25,000/t ($159/t). This price hike is attributed to the upsurge in LME nickel prices, coupled with the rise in chromium prices and the depreciation of the yen, all contributing to an increase in alloy costs.

The total price increment since the March contract will amount to JPY 75,000 ($479). With a growing anticipation of a robust recovery in domestic demand, market conditions are poised to strengthen further due to substantial price increases by manufacturers.

The escalating imports are adding to the sense of crisis. Notably, April saw a surge in imports of nickel-based cold-rolled steel, particularly from Chinese sources. While factors such as the sudden increase in Asia Mill's price hike, post-February contract, and temporary issues affecting POSCO Pohang Steel Works have been identified, concerns are rising over the over-supply dynamics primarily centered around China.

Chinese distribution movements are now noticeable in the Japanese market, with April witnessing a doubling of Chinese steel arrivals compared to the monthly average of the previous fiscal year, reaching a historical peak. While a continuation of the same scale is uncertain beyond May, the outlook remains ambiguous.

The company has expressed clear concerns about the detrimental impact of continuous influxes of unfairly priced imports from China, on the Japanese stainless steel industry. They emphasize the urgent need to explore remedial actions in accordance with WTO regulations and domestic laws.

Additionally, the Shunan Steel Plant, located within the Yamaguchi Works, has been non-operational since May 30 due to issues with the piping connection to the electric furnace and the dust collector. Immediate measures are being considered, including the potential restart of another electric furnace, previously suspended for structural enhancements at the end of March. The closure of the Shunan Steel Plant is expected to last approximately one month.