JFE Steel, one of Japan’s major steel producers and a company with influence on the retail sector, has decided to raise prices of chrome-based stainless steel (SUS 430) cold-rolled (CR) sheet by a further JPY 10,000/t ($86/t) in March regardless of store sales.
The company will strengthen its position in the market and become stronger in various regions of Japan, including Tokyo, Nagoya and Osaka. Distributors are expected to take advantage of the tight supply-demand situation. In these circumstances, the government is increasingly taking a stance to pass on the price increase as soon as possible.
JFE Steel has been trying to maintain stable supply in the face of a significant rise in costs, including main and auxiliary raw materials and various other costs (material, logistics, outsourcing, etc.), and has been raising its prices since Apr’21. The March price increase is the fifth, bringing the cumulative increase to JPY 75,000 ($648).
Rising material costs, tight supply-demand
The company’s latest price increase takes into account soaring costs and the tight supply-demand situation. The company intends to continue to monitor cost trends, including raw materials and the supply-demand situation in the market, and is likely to implement an additional price increase in April.
Nittetsu Stainless Steel also raised prices of chrome-based stainless steel thin CR sheets by JPY 75,000 since the Mar’21 contract. Automotive-related demand is in an adjustment phase, but overall demand is strong, and the market’s tight supply-demand balance remains strong as well. Owing to the small impact of imported materials, tight supply and demand is expected to continue.
Note: This insight has been published in accordance with an article exchange agreement between SteelMint and Japan Metal Daily.
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