- Both nickel- and chromium-based wire prices hiked
- Rising scrap prices increase meltshop production costs
SteelDaily: Nippon Steel has increased domestic stainless steel wire rod prices for March-May contracts, reflecting sustained cost pressure from raw materials, currency fluctuations, and rising input costs. Nickel-based (SUS304) witnessed a sharp increase, while chromium-based (SUS430) also moved higher, marking the third consecutive quarterly hike.
Alloy costs and base price revisions drive hike
The price revision was largely driven by higher alloy-linked costs, including nickel, chromium, and molybdenum, along with currency volatility. Base prices were also raised, supported by firm scrap rates and increasing labour and logistics expenses, further pushing up overall production costs.
Demand trends remained mixed, with stable automotive offtake and early signs of recovery in the semiconductor sector. However, construction and industrial machinery demand stayed subdued, while plant utilisation levels remained below optimal levels.
Market participants noted that continued oversupply in Asia could intensify import pressure, keeping sentiment cautious despite ongoing price hikes.
Scrap cost adds further pressure
In addition, a leading Japanese specialty steel producer raised stainless steel scrap procurement prices for 304-grade material effective 1 April. Market participants indicated that firm scrap prices, supported by nickel trends and tightening raw material availability, are elevating melt shop costs and reinforcing the cost-push environment.
Outlook
Stainless steel prices are expected to remain firm in the near term, supported by elevated input costs, although demand recovery will be a key monitorable.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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