- 300 series up JPY 20,000/t for fifth straight month
- Rising alloy, logistics, labour costs weigh on margins
SteelDaily: Nippon Steel has announced a price increase for its February contracts covering cold-rolled (CR) and medium-thick stainless steel plates for distribution, citing higher alloy costs and mounting manufacturing expenses. The move aims to secure profitability amid sustained cost pressures.
300 series prices raised; 400 series unchanged
The company increased prices of 300-series cold-rolled stainless steel and medium-thick plates by JPY 20,000/t for February contracts. Prices for 400-series products remain unchanged.
The hike reflects a rise in alloy surcharges under Nippon Steel’s proprietary “Alloy Link” pricing mechanism. Nickel prices on the London Metal Exchange (LME) have strengthened since late December, resulting in a JPY 20,000/t increase in alloy-related costs.
This marks the fifth consecutive monthly increase for 300-series stainless products. Since August contracts last year, cumulative price increases have reached JPY 50,000/t.
Further base price hike under consideration
Beyond alloy adjustments, Nippon Steel indicated that additional base price revisions may follow. The company highlighted continued increases in overall manufacturing costs, including logistics, raw materials, auxiliary inputs, and labour.
The producer stated that it is considering reflecting costs that cannot be absorbed internally into product prices starting from March contracts, signalling potential further upward revisions.
Demand outlook: Mixed domestic trends
Domestic stainless demand in Japan remains mixed across sectors:
Construction: Activity remains sluggish due to project delays and labour shortages.
Commercial kitchens: Demand has softened as the replacement cycle linked to inbound tourism has largely concluded.
Housing equipment: Government approval to continue subsidies for high-efficiency water heaters through 2026 is expected to sustain demand.
Semiconductor equipment: Signs of recovery have emerged since late last year, supporting expectations of improved stainless consumption.
For stainless steel plates, demand remains firm in the energy segment, particularly LNG thermal and nuclear power generation projects, alongside steady requirements from the shipbuilding sector.
Import concerns amid AD investigation
Nippon Steel also flagged rising imports of 300-series cold-rolled stainless steel from countries not currently subject to anti-dumping (AD) investigations.
The company stated that the Japanese stainless industry is closely monitoring potential circumvention following the launch of the AD probe. It emphasised that trade remedy measures may be pursued if unfair export practices are identified.
Outlook
Further price direction will depend on nickel trends, cost pass-through acceptance, and domestic demand recovery. With cost pressures persisting and imports under scrutiny, upward pricing bias may continue in the near term, particularly for 300-series grades.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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