Japanese Stainless Makers Watch Demand in China to Increase Export

Nickel series stainless cold rolled steel export price by Japanese makers is flat at around FOB US$ 2,700 per tonne for SUS 304 with 2 millimeters thickness. Japanese steel makers would not increase the export when the bid by overseas users is lower than the export price of makers in South Korea or Taiwan. However, the demand is increasing in China and South Korea when the users expect nickel price could increase in the beginning of 2010. Japanese makers could increase the export depending on foreign exchange rate, one Japanese maker source said.

Some Chinese users increase cold rolled stainless steel purchase, despite the off-demand season. Some users in China import several thousands tonnes of stainless steel while nickel price at London Metal Exchange is firm with potential strong tone, one market source said. Raw steel output for stainless steel in China is likely to increase to 9 million tonnes, in 2009 and China is expected to be the world largest stainless steel producer. The demand is unlikely to decline in China.