Lower Stainless Cold Sheet in Osaka

Stainless cold rolled flat steel market price decreased to 600,000 yen per tonne level for SUS304 base size around Osaka. With the lower selling price, the distributors lose money in the monthly financial account. The market price is nearly inventory value held by the distributors and they cannot cover their cost. The distributors could experience severe time when the market price is expected to keep weak in the year. The market price decreased from 630,000-650,000 yen per tonne in September and the peak of 670,000 yen in August. The distributors could secure marginal profit even when the shipment decreased by 30-40% from the peak. However, under 600,000 yen level, they cannot make money through the transaction for the high priced inventory. The distributors are still deposit after they gained major profit in the first half year when the market price jumped. They already secured enough profit to post yearly black ink despite of the recent loss. Domestic stainless makers are expected to increase the selling price in and after November to reflect the higher nickel price. The distributors could make money again with lower priced materials if the reselling price would increase again.