Dropping Ni Stainless Cold Sheet Price in Tokyo

Nickel series cold rolled stainless steel sheet market price is decreasing slightly at around 340,000-360,000 yen per tonne for SUS304 base size around Tokyo. Many dealers are selling the products at cheaper prices to cash the inventories purchased at higher prices. Dealers’ loss is expanding. The market price is weakening due to slower demand. The price is expected to continue lowering when nickel ingot price plunged and dealers’ shipment maintains very slow around Tokyo.The market inventory volume is excess around Tokyo. Japanese stainless steel makers are reducing the output by 50-60% compared with the capacity. But the inventory is decreasing only slightly when users are holding conservative buying due to dropping nickel price. Dealers are setting the reselling price cheaper. A dealer source said dealers are selling at a loss for realization or cash management and their financial strength is weakening.Nippon Steel & Sumikin Stainless Steel announced to reduce crude steel by over 50% for January-March from the common level and skip order acceptance from dealers for 6 consecutive months. Nisshin Steel’s Shunan works reduces steel making by 40%.Japanese stainless sheet coil inventory decreased by 5.1% to 53,949 tonnes at the end of November from the previous month, which had exceeded 60,000 tonnes at the peak, according to Japan Stainless Steel Coil Center Association. However, the inventory adjustment is likely to take more time. The inventory rate is over 2 months of shipment since coil centers’ sales decrease.