Sumitomo Metals Naoetsu, Japanese major stainless steel maker, announced on Tuesday the firm reduces the production for stainless angle and channel and reduces the accepted order from dealers by about 50% for the contract in June for a while from last month. The firm will adjust the order because the inventory is increasing in the market from the beginning of this year and the supply and demand is expected to loose.
The firm reduces the production since October 2004. The firm will stop the operation of rolling mill in the shaped steel plant in July for a month. The demand is for mainly distributors kept good for building material and food plant from last year then the demand for shaped stainless steel decreased in May from a year ago. Uses of stainless products reduce their orders when nickel price is expected to decrease and stainless scrap price decreased by 110,000 yen per tonne for May-June. The firm will continue the reduction for their order until users change their recognition. The firm’s output for shaped stainless steel products is about 900 tonnes per month for domestic market and 300-400 tonnes for export.Japan Steel Scrap Composite Prices (Sangyo Press)
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