NSSC to Keep Ni Stainless Cold Flat Supply Cut for Dealers

Nippon Steel & Sumikin Stainless Steel (NSSC) announced on Tuesday the firm rejects almost all order for nickel series cold rolled stainless flat steel from domestic distributors for October order. The firm keeps rejecting the order for 3 months in a row. The firm expands the output reduction to more than 30% of the capacity at Hikari plant.

The firm reduces the alloy linked price by 10,000 yen to 445,000 yen per tonne for cut edge coil with 2.0 millimeters or less thick and to 455,000 yen for the products with more than 2.0 mm thick as indicator despite of the order rejection. The firm also reduces the plate price by 10,000 yen.

The firm tries to reduce the inventory through the supply cut when the demand decreases in August and September wider than expected. The firm sees the buyers’ appetite decreases due to lower nickel ingot price when nickel ingot price at London Metal Exchange decreased to US$ 5.62 per pound on Monday. The firm expands the output reduction of cold rolled nickel series stainless steel from current 30% of the capacity to more than 30%.

The firm sees uncertainty for plate as well when some offshore buyers reduce the order under financial crisis while NSSC products plate at the full capacity.