Dropping Cold Rolled Flat Stainless Steel in Tokyo

Market price of stainless cold rolled flat steel keeps decreasing around Tokyo. The price is around 290,000 yen per tonne for SUS304 with 2 millimeters thick. The price became below 300,000 yen for the first time in 3 years and 3 months. Some dealers try to liquidate the inventory toward fiscal yearend even at loss making price. Dealers’ loss is expanding. Domestic demand is weak. Many dealers are holding off the buying of stainless sheet due to anticipation of a fall for nickel price.

The inventory in the market keeps excess around Tokyo. Domestic stainless steel makers are reducing the output by around 60% compared with the capacity while users are holding off the buying of stainless sheet when they are adjusting the inventory. Domestic and overseas demand keeps low and nickel price is dropping at LME.

Inventory of nickel series cold rolled stainless steel sheet decreased by 5.7% to 47,085 tonnes at Japanese coil centers at the end of February, according to coil center association. But the inventory rate kept over 2 months when their sales volume is decreasing. Inventory adjustment is expected to take a time.

The import price of nickel series stainless steel sheet hit the bottom at around US$ 1,900 per tonne. On the other hand, business negotiation by exporters hasn’t progressed due to higher yen rate.