Dropping Stainless Cold Rolled Flat Steel in Tokyo

Market price of stainless cold rolled flat steel keeps decreasing around Tokyo. The price is around 320,000 yen per tonne for SUS304 with 2 millimeters thick, which is around 20,000 yen lower than January level. The dealers try to liquidate the inventory toward fiscal yearend even at loss making price. The price seems far from the bottom when the price is expected to decrease more due to slow demand and lower priced import.

Nickel ingot price deceased again in the week to US$ 4.4 per pound on Wednesday while the price seemed to hit bottom in January. The lower nickel price impacts on stainless market price.

A dealer said the sales decreased by 30-40% in January from a year earlier and the sales are same level in February as January. Other dealer said the sales volume decreased to less than half of a year earlier level and the dealers are pinch for liquidity unless they could get additional finance from financial institutions.

The nickel series stainless cold rolled flat steel inventory is expected to decrease in January. However, the decrease could be marginal due to lower shipment despite of major production cut by the makers.

The demand is expected to keep slow due to very slow activity of the users including construction and kitchen makers. An industry source expects the demand could keep low at least by July-September and couldn’t recover the level in 2008. The price could decrease to less than 300,000 yen per tonne in a couple of months.

The market price of stainless cold rolled flat steel decreases around Osaka as well. The price decreased by 20,000-30,000 yen per tonne in the month to 320,000 yen for SUS304 with 2 mm thick. The buyers try to minimize the purchase volume with expectation for lower price reducing the dealers’ shipment. The dealers try to reduce the inventory but the pace is slow.