Weak Stainless Cold Rolled Flat Price in Tokyo

Nickel series stainless cold rolled flat steel market price is weak at 280,000-290,000 yen per tonne for SUS304 base size around Tokyo. The makers’ price hike announcement for May contract wiped lower price expectation in the market while the dealers’ shipment is still very low level under slow demand.

A dealer source concerns the demand could decrease more while the shipment is very slow even after hitting the bottom. A trading firm source said POSCO’s price reduction could impact on Japanese market. The market price around Tokyo is in crossroad while the price is recognized to hit bottom already.

The raw materials side is healthier than before. Nickel ingot price is stable at around US$ 5.5 per pound recently. With the price range, the makers’ alloy surcharge should increase for distributors for June contract.

However, the dealers are still reluctant to purchase the materials except for immediate requirement while they tend to increase the purchase when they expect higher price. The dealers’ sentiment is still cautious while the inventory is very low level with some stock out sizes.