NSSC Eyes Overseas Production of Original Stainless Grade

Nippon Steel & Sumikin Stainless Steel Corporation (NSSC) examines downstream operations for cold rolled stainless steel products at overseas. NSSC seems eyeing offshore production of original grade alloys in China or Southeast Asia. The firm analyzes local supply and demand is imbalance for common grade products such as SUS 304 when Chinese, South Korean and Taiwanese stainless steel makers are aggressively increasing sales in Asian market. NSSC seems to have recognized necessity to promote original grade alloy sales in order to keep high competitiveness and gain margin in Asian market.

Overseas productive operation would cost 10-20 billion yen at least as initial investment. NSSC would judge the investment cautiously. However, some concerned sources point out NSSC is losing competitive power in global market and it seems late to start offshore production at this timing. NSSC may have several choices to establish an overseas plant by standalone, or in cooperation with Japanese trading houses or local major stainless steel makers. This is not a surprising decision since extremely high yen rate causes shrinkage of domestic stainless steel demand.