Japanese Stainless Makers’ Operations Recover to Around 80%

Operating rate of Japanese stainless steel makers has improved to over 80% compared with the peal level in 2008. The positive factor is that the export increased for chrome series cold rolled sheet and plate. An executive officer of Japanese stainless steel maker said the firm’s production is likely to increases by 10% in and after April compared with the present volume. Meanwhile, domestic demand of nickel series cold rolled sheet maintains low for building materials.

Operating rate at Nippon Steel & Sumikin Stainless Steel Corporation (NSSC) has improved to 90% for stainless steel bar and wire. NSSC’s Yawata works keeps full operation for plate when the overseas industries such as petroleum processing and LNG development strongly demand the plate. NSSC is also negotiating for a new order for a large desalination plant.

Operating rate at Nippon Yakin Kogyo and Nippon Metal Industry currently exceeds 80% for exporting SUS 304. Nippon Metal Industry has increased the production of precision rolling products such as low nickel products for Asia. The operating rate of Kinuura works rose to 80% against the capacity.

The market price of nickel series cold rolled sheet is surging to US$ 3,000 per tonne for Asia to reflect high nickel price. Domestic demand is low for stainless sheet. Many stainless makers are shifting to the export to improve their profits.