Japan: Nippon Steel to raise prices of Ni-based CR sheets by $172/t in Mar'22

Japan's largest steelmaker, Nippon Steel Stainless Steel Corporation (NSSC) will increase prices of nickel-based cold-rolled (CR) steel sheets (thin, medium and thick plates) for retail sales by JPY 20,000/tonne (t) ($172/t) in Mar'22. The company will increase prices in response to the sharp surge in LME nickel prices. The nickel-based cold-rolled thin sheets prices have been increased by a total of JPY 200,000 ($1,723/t) since Jun'21 contract.

LME update on nickel trading

The London Metal Exchange (LME) suspended nickel trading on 8 Mar'22 with immediate effect.

NSSC also suspended offers for overseas spot nickel-based thin sheets from the end of last week, while offers for thick and medium plates have also been suspended for overseas projects in all grades from 7 Mar'22. The company intends to continue suspending offers at least until LME nickel trading resumes and prices settle down.

Outlook

The outlook is unclear, but based on the February and March average nickel prices, the April contract price is expected to rise. If NSSC operates on the alloy link system as usual, it will raise prices even more significantly from the current high levels, but the company is not in a position to decide on a policy at present.

Although, the demand trends in the future are unpredictable, the current situation is firm, with NSSC's sheet and plate mills continuing to operate at full capacity. In particular, the thick plate plant will be undergoing regular repairs for three weeks in May, and it is almost certain that the high level production will continue from April to June.

As imports of cold-rolled steel, mainly nickel-based, were also at a high level in January, concerns about the impact on Japan's stainless steel industry are increasing. The company will continue to strengthen monitoring and closely examine the impact of the increase in steel imports on the domestic industry, and if any damage is identified, NSSC will take the necessary measures.

Note: This insight has been published in accordance with an article exchange agreement between SteelMint and Japan Metal Daily.