Nisshin Steel Keeps Order Reduction in July

Nisshin Steel will wait and see an accepted order of nickel series cold rolled stainless steel sheet for distributors in July contract. Kazushi Fukami, managing director, said in the middle of June that the firm cuts an accepted order by 80-90% in June contract. As a result, the firm didn’t accept an order in June contract, and will cut an order for 2 months. He said the firm will accept an order with the contract price in July if there is an order from user. It is uncertain that the firm would cut an accepted order or not.The firm is expected to sell the same price in August contract from July contract when the firm presents the contract price to users with 2 months.The firm announced to mull to stop the operation of steel making process for nickel series cold rolled stainless sheet in Syunan iron works for August-September. Production volume of stainless sheet for august-September is expected to 30% compared with the production capacity. Because the firm’s export for Asia is decreasing by 80% compared with July shipment, the firm reduces the production and adjusts the supply and demand for domestic market. The firm reduced the production of nickel series cold rolled steel sheet by a large margin in fiscal 2005 at the ended of March 2006 when world stainless market price decreased, and kept the black in the current account when other steel maker’s profit in such as China was the red.