NSSC Skips Order Receipt of Ni Stainless Cold Sheet in Jan

Nippon Steel & Sumikin Stainless Steel Corporation (NSSC) announced on Tuesday the firm skips order acceptance for nickel series cold rolled stainless steel sheet from distributors in January. The order skip continues for 6 consecutive months.

The firm sets the selling price of Ni series cold sheet and plate unchanged for January orders. The firm doesn’t adopt the alloy link system to the selling price since nickel price was averagely below US$ 5.18 per pound for November-December. Meanwhile, NSSC decreases the selling price of chrome series cold stainless steel sheet by 4,000 yen per tonne by the alloy link system.

The firm’ selling price is 350,000 yen per tonne for Ni series cold flat steel with below 2 millimeters thickness cut edge grade and 360,000 yen for the products with over 2 mm thickness, while 304,000 yen for Cr series cold flat steel.

The demand is decreasing from building constructions and electronic appliances. The firm is reducing the output of Ni series cold sheet by 50% compared with the capacity.

NSSC said the demand for stainless steel plate is also decreasing at domestic and overseas markets. On the other hand, the demand is strong from atomic power plants or environment industries. The firm reduces the output by 30% and keeps the production level in accordance with the demand.

NSSC also announced the firm skips ferrochrome contracts with suppliers for January-March. The contract skip is the first case. NSSC can’t consume ferrochrome purchased during October-December 2008 since the firm is reducing the output of stainless steel products.