Stainless Steel Price in Tokyo is Flat at 300,000 Yen per Tonne for SUS304

Stainless steel sheets market price in Kanto around Tokyo is flat with weak tone at 290,000-300,000 yen per tonne for SUS304 on base size and at 190000-200000 yen per tonne for SUS430.The shipment of SUS400 series stainless steel sheets, which is mainly fro automobile, is good. That order volume for automobile in November, 2005 increased by 23% over the same month of last year and by 7% over the previous month. However, it for other field doesn’t have dramatic movements. Otherwise, the amount of SUS300 series stainless steel sheets order doesn’t change from the last month and decreased by 23.5% over the same month of last year. Although order condition is dull, the market price keeps flat because the stainless steel makers are adjusting the production.According to Japan Stainless Steel Coil Center Association, SUS300 series cold rolled stainless steel sheets inventory volume dropped to 61,642 tonnes by 5.03% over the previous month and SUS400 series cold rolled stainless steel sheets inventory increased to 42,090 tonnes by 1.99%. The inventory rate of SUS300 series against shipment volume is 1.87 months and it of SUS40series against shipment is 1.88 months. Those rates came up at 1.8 months which is decent inventory level.Nippon Steel & Sumikin Stainless Steel Corporation had been adjusting the supply and demand by the decreased production by about 35% over the same month of last year on each month since February, 2005. Japanese major stainless steel maker, Nisshin Steel is thorough about decreased production of the cold rolled steel sheets by 30% over the same month of last year. Since other makers are decreasing the production, the market inventory shifted over to decrease after it gets the peak.Consequently, the market price had been continued the same price against the demand is weak. The demand is recovering in few months.LME, London Metal Exchange, nickel price has begun to rise from December, 2005. The price in January 19 was at 6 dollars and 60 cents per pound. There is possible that the price achieve at 7 dollars again before the end of this fiscal year at the ended of March. It may be rise to the contract price for distributors of Nippon Steel & Sumikin Stainless Steel Corporation and Nisshin Steel that they introduced surcharge system.