Nippon Seisen to Reduce Stainless Steel Wire Output by 30%

Osaka based stainless steel wire maker, Nippon Seisen reduces the nickel series stainless steel wire output by around 30% in August compared with averaged of June and July. The firm reduces the output to meet the rod arrivals when the rod makers reduce the output. The firm prepares the additional reduction in and after September depending on the condition. The demand is very slow for mild steel wire for mesh and tack and for hard steel wire for spring when distributors are reluctant to buy now due to plunging and volatile nickel ingot price at London Metal Exchange. The rod maker of Nippon Steel & Sumikin Stainless Steel reduces the nickel series stainless wire rod output by around 40% in August and September compared with April-June level to improve the supply balance. Nippon Seisen also reduces the output by extending the summer holiday from usual 2,200 tonnes per month with the expectation for lower rod arrivals. Nippon Seisen considers additional reduction in and after September depending on the rod supply while the demand is firm for automobile and appliances. The firm expects the lower supply could impact on the market in October when the firm expects the inventory would decrease significantly.