Japan: NSSC to reduce stainless steel wire rod prices for Jan-Mar'24

Nippon Steel Stainless Steel Co., Ltd. (NSSC) is set to implement a reduction in the prices of stainless steel wire rods for the domestic market in the upcoming months, spanning from January 2024 to March 2024, according to a Japan Metal Daily report.

Notably, the reduction in the price of nickel (SUS304) will amount to JPY 30,000/t, while the price of chrome (430) will remain unchanged. The fluctuations in alloy pricing primarily stem from the decline in LME nickel prices, with the base portion remaining unaffected for both nickel and chromium.

NSSC to reduce: SUSXM7 by JPY 40,000/t, SUS303 by JPY 35,000/t, and SUS310S by JPY 85,000/t. These adjustments reflect the dynamic nature of alloy costs, dependent on the composition of additive alloys like nickel and molybdenum.

Furthermore, the price of SUS316, a grade characterized by molybdenum and a high nickel content, will witness a JPY 80,000/t reduction, with JPY 40,000/t attributed to the fluctuating molybdenum prices.

Examining market conditions, the domestic end-product sector sees a recovering trend in automobile production. Conversely, the construction-related sector faces challenges such as delays in project commencement and prolonged construction periods. Overseas markets, particularly in Asia, grapple with an economic slowdown, primarily driven by China's economic downturn.

Operational expectations indicate that the Yamaguchi Works and bar wire plants will operate at approximately 70% capacity during the October 2023-December 2023 and January 2024-March 2024 periods. Meanwhile, NSSC remains observant about trends in imported steel, considering the potential impact of sluggish demand and oversupply in the Asian region on the arrival of wire rods and processed products in the future.

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