Nisshin Steel and Sumitomo Metals Skip Cold Stainless Sheet Orders

Nisshin Steel, Japanese major stainless steel maker announced on Thursday the firm skips order receipt for nickel series cold-rolled stainless steel sheet from dealers in October (October contracts and November shipment). The firm considers dealers’ inventory is excess though the demand is slow. Nickel price is expected to fall. Additionally South Korean stainless steel products are likely to inflow largely when won exchange rate is weakening against yen.

The firm skipped the order receipt from dealers for 4 consecutive months. Shunan works of the firm will continue output reduction at the cold rolling mill by 30% compared with normal operation and at the steel making process by 10%.

Dealers’ inventory of nickel series cold-rolled stainless steel sheet decreased by 2.2% to 59,700 tonnes in September from August, according to Japan Stainless Steel Coil Center Association. However, the inventory still keeps high level.

Sumitomo Metals (Naoetsu) also announced on Thursday the firm reduces the output of stainless angle and channel by 30% in October compared with the average during July-September and skips order receipt from all users including dealers in October. The firm will keep the output reduction for a while. The firm sets the selling price unchanged for October contracts.

The users are minimizing procurement when nickel price or business condition is unclear. Consequently, Sumitomo Metals (Naoetsu) aims to decrease the market inventory by the cutting of the output and the order receipt.