Japan: Nippon Steel raises stainless steel sheet prices for June contracts

• 300-series prices increase by JPY 25,000/t
  
  
• 316L extra surcharge revised amid molybdenum rally
  
  

SteelDaily: Japan's Nippon Steel has announced a price increase for stainless steel sheets effective June contracts, citing higher energy, freight, raw material, and manufacturing costs. The producer raised 300-series stainless steel sheet prices by JPY 25,000/t ($156/t), while 400-series cold-rolled stainless steel prices increased by JPY 10,000/t ($62/t).

In addition, Nippon Steel revised extra surcharges for molybdenum-bearing grades, increasing 316 and 316L extras by JPY 45,000/t($281/t). The adjustment reflects a sharp rise in molybdenum prices and marks the first revision for 316-grade surcharges in eight months.

Rising costs continue to pressure producers

The latest price revision reflects increasing production costs linked to higher fuel, LNG, electricity, freight, and auxiliary material expenses. Market participants noted that geopolitical tensions in the Middle East have continued to support energy prices, adding further pressure on stainless steel manufacturing costs.

The company also increased charges for surface protection films used in stainless steel sheet products, citing higher material costs.

Semiconductor sector supports demand

Demand for 300-series stainless steel products has remained firm, supported by increased activity from Japan's semiconductor manufacturing equipment sector. Market participants also noted that reduced imports from countries facing anti-dumping investigations, including China and Taiwan, have tightened domestic availability.

According to industry data, Japan's inventory-to-shipment ratio for 300-series cold-rolled stainless steel declined to 2.49 months at the end of April, falling below the 2.5-month mark for the first time in around one year. Meanwhile, demand for 400-series material remained steady, driven primarily by commercial kitchen equipment applications.

Outlook

Japan's stainless steel market is expected to remain firm in the near term, supported by higher alloy costs, elevated energy prices, healthy semiconductor-related demand, and tightening inventories. However, raw material volatility and broader economic conditions will continue to influence pricing trends.

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