NSSC Increases Dual Phase Stainless Sheet Capacity in April

Mr. Hiroshi Kinoshita, the president of Nippon Steel & Sumikin Stainless Steel (NSSC), said new equipment which produce dual phase stainless sheet is commissioned in Yawata works on April and the capacity of the sheet increases by triple to 3,000 tonnes per month. Mr. Kinoshita gave the interview to Japan Metal Bulletin. Mr. Kinoshita explained the sheet has a 10-to-1 advantage over weight saving for wind power station on the sea or seawater desalination plant, Japanese domestic users and dealers have a vested interest for the sheet.

Mr. Kinoshita said NSSC doesn’t have excessive inventory when the inventory has an impact to profit due to bumpy ride of material price, and thinks flexibility is important for material purchase and production with the sales situation. Mr. Kinoshita said more cost reduction is needed for continue of the business. Mr. Kinoshita said NSSC must enhance function of the products and increase added value products when business operation cost such as land cost in Japan is higher than other countries.

Mr. Kinoshita said NSSC introduced alloy surcharge system for stabilization of the management or manifestination of material cost for users, but the system based average nickel price for last 2 months lags behind nickel price when fluctuation of nickel price got up steam. Mr. Kinoshita pointed out stainless steel makers decides the selling price by forepast material price, but the market moves recent and future material price.

Mr. Kinoshita said NSSC is collaborating with Nisshin Steel for complementary supply of hot rolled stainless sheet and is mulling about more collaboration for each other’s merit, but both company don’t think to amalgamate. Mr. Kinoshita explained NSSC think to enhance alliance of other stainless makers when it is hard Japanese stainless steel makers continue the business with present production capacity against major overseas stainless makers, and NSSC contributes to users’ competition power by alliance with other stainless makers.