Japan Stainless Steel Export Drops Down in Nov-Dec

Japanese stainless steel product export, including sheets, strips and tubes, decreased by 40.9% to 71,188 tonnes in December 2008 from a year earlier, according to Japan Stainless Steel Association. The export for November-December declined by 34.1% to 144,024 tonnes. Japanese stainless steel makes’ shipment dropped down in and after November 2008 along the global economy recession and the demand shrinkage for stainless steel products. The export in January was likely to keep the level as low as November-December.

Japanese stainless steel export totaled 1.34 million tonnes through 2008, increasing by 4.6% from 2007. The export volume was the thirdly highest during late 5 years, almost as same as 2005. However, the backgrounds were different between 2005 and 2008. In 2005, Japanese makers reduced their outputs with a concern that Chinese supply capacity was excess against the actual demand. In 2008, especially in and after November, the export volume plunged down along the global economy turndown and the material price down such as nickel.

A Japanese trader source said stainless steel product inventories seem to have became less than half of the peak in China and the demand could recover after Chinese New Year holidays. Meanwhile, nickel price still stays low at around US$ 5 per pound and chrome price is significantly decreasing. The export price keeps low.