Nippon Steel Keeps Supply Adjustment for Welded Stainless Tube

Nippon Steel continues to reduce order reception volume for welded stainless steel tube from domestic dealers by about 50% which started in July 2007 and adjusts the production for September-October. The firm seeks to adjust the market inventory to the moderate level by reduction of the order reception and the production.The market price of nickel series stainless steel products is expected to down soon when nickel price maintains downtrend after the peak at US$ 25 per pound in May 2007. The shipment of welded stainless steel tube is slow at dealers’ sites and the market inventory is increasing.Nippon Steel said the firm has many big projects for LNG or plant engineering in the second half of fiscal 2007 ending of March 2008 and the demand condition is firm as total. However, as to the middle- and small-contract users’ market, the firm judged the inventory adjustment is effective to normalize the supply and demand balance.