Japan: Nippon Steel Stainless announces price revision for Nov'23

Nippon Steel Stainless Steel has announced a reduction in the selling price of nickel-based cold-rolled thin sheets for sales in November 2023. The price will be lowered by JPY 5,000/t ($2,757/t), in response to the decline in LME nickel prices, according to Japan Metal Daily report.

However, it is important to note that procurement costs have been increasing overall. This is due to the rise in prices of raw materials for steel, as well as the recent depreciation of the Yen. Additionally, various materials continued to remain at high prices.

Nippon Steel Stainless Steel will closely monitor these trends and consider adjusting product prices accordingly. It is possible that the company might raise the base price in the December 2023 contract, regardless of whether it is nickel or chromium.

Although the domestic supply-demand environment has not undergone significant changes, the coil center's daily sales volume is showing a slight upward trend. This can be attributed to the progress of large-scale development projects, particularly in the Tokyo metropolitan area. Furthermore, there has been an expansion in inbound demand and a full-scale recovery of automobile production.

During the October to December period, the sheet plant is expected to operate at approximately 70% capacity.

The coil center inventories have experienced a consistent decline for nine consecutive months, up until the end of September 2023. However, it is important to note that the process of inventory optimisation is still ongoing.

The optimisation efforts have been hindered by the significant influx and arrival of imported cold-rolled steel. This influx has raised concerns regarding the possibility of these imported products being sold at unfair prices, which are not profitable for the industry. Consequently, the Japanese stainless steel industry has suffered both in terms of quantity and price due to the impact of imported steel.

In an effort to address this issue, the company has actively participated in public-private steel talks held in October, aiming to raise awareness among the relevant countries. However, if the situation fails to improve in the foreseeable future, the Japanese stainless steel industry will be compelled to consider implementing necessary measures to safeguard its interests.

Note: This article has been published in accordance with an article exchange agreement between JMD and SteelMint.