Nippon Steel announces price reductions for stainless steel wire rods

Nippon Steel Stainless Steel Corporation (NSSC) plans to reduce prices of stainless steel wire rods for the domestic market in the upcoming contract period. Under the June-August contract (July to September rolls), prices of nickel-based (SUS304) and chromium-based (430) wire rods will be reduced by JPY 15,000/t. This price adjustment is influenced by various factors, including the decrease in London Metal Exchange (LME) nickel prices and a slight depreciation of the yen since the previous contract period (March-May).

Additionally, several special steel grades will see price reductions. SUSXM7 will be down by JPY 25,000/t, SUS303 by JPY 25,000/t, and SUS310S by JPY 60,000/t. The price decrease for SUS316, a steel grade with high nickel and molybdenum content, will be substantial, at JPY 120,000/t, reflecting fluctuations in alloy costs.

While the domestic market shows signs of recovery, especially in automobile production and the correction of excess inventory in the supply chain, challenges remain. Concerns persist over semiconductor supply and a complete rebound has not been achieved. Overseas, economic stagnation caused by rising interest rates and delays in China's economic recovery contribute to a lack of significant demand growth.

NSSC aims to monitor industry demand trends closely and align sales and production activities with market conditions. The Yamaguchi Works and bar wire plants have been operating at around 70% capacity since the beginning of the year, and this is expected to continue in the July-September period.

While the import volume of stainless steel wire rods over the past three months (February-April) was significantly lower than the previous year, averaging just over 700 tonnes (t) per month, the company remains vigilant against the potential influx of unfair imported steel products that could negatively impact domestic industries, given the current supply and demand environment in the Asian region.

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