Weak Stainless Steel Bar Price in Tokyo

Stainless steel bar market price decreased to 540,000 yen per tonne for SUS304 base size around Tokyo, which is around 10% lower from the beginning of the year. The dealers’ shipment decreases by 30-40% from a year earlier level when the demand decreases for semiconductor, construction machinery and valve. The price is expected to decrease more when the demand takes more time to recover.

A dealer source said the sales were historical low in February and the situation shows no sign to recover for March. Small- and mid-sized dealers try to secure liquidity toward fiscal year end in March. A trading firm source said some of the dealers try to liquidate the inventory at lower price when the demand is very slow and some of the cutting process plants operate at less than half of a year earlier level.

Nickel ingot price was US$ 4.58 per pound at London Metal Exchange on Thursday, which decreased from January level. The lower nickel price results in lower price expectation for nickel series stainless products along with the slow demand. The price could keep decreasing without sign to hit bottom.