Nisshin Steel Eyes Offshore Market under Low Domestic Demand

Nisshin Steel aims to expand the sales of high value added steel sheets mainly for overseas markets to maintain profitability under low demand and operation. Fumio Oda, vice president of Nisshin Steel, explained at a private interview with Japan Metal Bulletin. Nisshin Steel’s operation is currently recovering to 70-80% level compared with the peak.

Mr. Oda described domestic orders for special steel sheets and stainless steel products are gradually recovering from automobile industry along automakers’ output increase. On the other hand, demand for steel and stainless products from domestic construction market is even worsening despite of the main application.

Offshore demand is increasing mainly from China. Mr. Oda explained sales volume of Ningbo Baoxin Stainless Steel, a joint venture company with Bao Steel for cold rolled stainless steel products, increased to near 50,000 tonnes per month for April-June 2009 from less than 40,000 tonnes during January-March 2009. The JV company kept almost full production for April-June and the operation maintains high in July.

As to crude steel production, Nisshin Steel decreased the output by 30-40% compared with the peak for January-March 2009 and widened the output cut range for April-June. But, he said, the firm plans to recover the production to 70-80% level at Kure works and Shunan works during July-September. Shunan works implemented 60% output cut for January-March and 40% for April-June.

Mr. Oda explained Nisshin Steel established a new marketing department on 1 July to cultivate overseas market for Nisshin Steel’s strategic products such as special plating steel sheet and surface treated stainless steel sheet. The firm targets such applications as new energy, environment, new generation cars, digital appliances, information and telecommunication.