- Move marks first base price hike in 2 years
- Cost pressures, weak yen drive price hike
Japan Metal Daily: On 14 April 2026, JFE Steel announced that it would implement a price increase of JPY 15,000/t ($94/t) for its domestic chromium-based stainless steel sheet products, applying to both direct-contract sales and spot-market sales. This move follows a JPY 10,000/t ($63/t) base price hike initiated in March.
This marks the first base price increase for the company’s chromium-based stainless steel sheet products in two years.
Additionally, in response to rising ferro chrome prices for shipments scheduled between April and June, the company is seeking a further JPY 5,000 ($31/t) increase effective in April, bringing the total price hike to JPY 15,000/t ($94/t).
Given that JFE Steel is a major domestic player with significant influence in the spot-market sector, steel distributors are likely to face pressure to pass these price increases on to their own customers in short order.
The company has incurred substantial cost increases driven by a confluence of factors: soaring prices for key steelmaking raw materials — a trend persisting from the first half of the previous fiscal year through the present — depreciation of the JPY, and the continued rise in various operational expenses, such as labour and logistics costs. As it has become increasingly difficult to absorb these rising costs solely through internal cost-cutting efforts, the company has decided to revise its base prices.
This is the first price increase driven by chromium prices in five months, since last November. For customers utilising raw-material-linked pricing formulas, price adjustments will be implemented in accordance with their respective contractual formulas.
The company stated, “Our aim is to restore the value of steel products across the entire supply chain to an appropriate level, thereby ensuring that all entities involved in steel distribution can secure the necessary profit margins to sustain their business operations.” While concerns remain regarding potential spikes in the prices of raw fuels and equipment due to heightened geopolitical tensions in the Middle East, the impact of these factors has not been factored into the current base price revision. The company intends to consider reflecting any such impacts in its selling prices in the future, should the need arise.
Meanwhile, Nippon Steel — a major industry peer that revises its spot-market stainless steel sheet prices on a monthly basis — implemented a base price increase of JPY 10,000/t ($63/t) for chromium-based stainless steel sheet products as part of its spot-market contracts for March.
Furthermore, Nippon Steel conducts separate price adjustments specifically to reflect changes in chromium prices on an ongoing basis. As price-hike inventories from the two major companies gradually permeate the distribution market, it appears inevitable that the upward trend in market conditions will intensify.
Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.
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