Nippon Steel & Sumikin Raises Prices on Nickel Costs
Nippon Steel & Sumikin Stainless Corp., Japan’s largest stainless steel producer, raised sheet metal prices for a ninth month because of higher nickel costs.
The company, which isn’t publicly traded, increased the price of its 304-grade steel sheet to 475,000 yen ($4,050) a metric ton this month, from 420,000 yen last momth, the Tokyo- based company said in a statement yesterday.
Nippon Steel & Sumikin said it may next month raise prices again of the sheets, used in rail vehicles, oil and petrochemical plants and auto parts. London prices of nickel, used to rustproof steel, have have more than doubled this year.
“Demand from automakers and manufactures of electrical appliances remain strong,” said the company, which is 80 percent owned by Nippon Steel Corp., Japan’s biggest steelmaker. “Supplies have been tightened on limited imported materials, coupled with strong demand.”
Nickel for delivery in three months fell $500, or 1.8 percent, to close at $27,500 a metric ton on the London Metal Exchange yesterday. The metal traded at $29,950 a ton on Aug. 22, its highest in at least 19 years.
Shares of Nippon Steel fell 4 yen, or 0.8 percent, to 494 yen in Tokyo at 11:00 am local time. Sumitomo Metal Industries Ltd., Japan’s third-biggest steelmaker, owns 20 percent of Nippon Steel & Sumikin.
