Japan: Nippon Steel to sharply raise thin stainless steel sheet prices from FY’26

• Logistics, equipment, labour, auxiliary material costs rise sharply
• Nippon Steel to also introduce new thickness, width extras

Japan Metal Daily: Nippon Steel has decided to significantly raise selling prices of thin stainless steel sheets (0.1-0.2 mm and below) for both domestic and export markets, with customer negotiations commencing in February. The hike, to be implemented from FY’26, is expected to reach up to 100% over current levels, depending on specifications.

In addition to a base price increase, the company will introduce new thickness and width extras. Unlike stainless cold-rolled sheets above 0.3 mm, ultra-thin gauges previously did not carry thickness extras. Moreover, most thin-gauge products are supplied in wide or customised sizes, resulting in higher yield losses that were not historically reflected in pricing.

Cost pressures intensify at Shunan facility

Production of thin stainless sheets is concentrated at the Shunan area of Yamaguchi Works. Compared with standard stainless CR sheets, ultra-thin material requires specialised rolling equipment, tighter process control, and higher production load, significantly elevating manufacturing costs. Over the past four to five years, logistics, auxiliary materials, equipment maintenance and labour costs have risen sharply, eroding margins as price revisions lagged actual cost inflation.

Demand outlook remains broadly stable

Thin stainless sheets-covering both austenitic and ferritic grades-serve automotive components, battery materials, electronic parts, precision applications and construction uses. While internal combustion vehicle-related demand may moderate amid EV transition, growth in battery and electronics segments is expected to offset declines, keeping overall demand broadly stable.

Outlook

The proposed revision signals a structural reset in thin-gauge stainless pricing. While buyers may resist steep hikes initially, sustained cost inflation and limited specialised production capacity could support implementation over FY’26. Market response will hinge on downstream acceptance and substitution flexibility.

Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.