- Only automotive sector sees moderate recovery signs
- Co focusing on cost reductions amid rising input costs
Japan Steel has announced a reduction of JPY 15,000/t ($112/t) for nickel-based (SUS304) stainless steel wire rods for domestic contracts covering June to August, while prices of chrome-based grades remain unchanged. Deeper cuts apply to special steel grades, with reductions of JPY 25,000/t ($187/t) for SUSXM7, JPY 20,000/t ($150) for SUS303, JPY 30,000/t ($225/t) for SUS316, and JPY 40,000/t ($300/t) for SUS310S. These adjustments reflect alloy cost fluctuations based on nickel, chromium, and forex indices.
Domestic demand remains sluggish, particularly in construction and industrial equipment, while the semi-conductor segment is uncertain. Only the automotive sector shows moderate recovery. Overseas demand continues to lag, delaying broader market recovery. Production at Yamaguchi Steelworks stainless steel rod wire plant is running at 80% capacity.
Although US tariff impacts are yet to materialise, the company remains vigilant about potential import pressures from Asia due to regional oversupply. With rising costs of materials, equipment, and labour, Japan Steel is focusing on internal cost reductions and may consider price adjustments if further cost absorption proves unfeasible.
The market outlook remains cautious, with ongoing weak demand and heightened competition from imports likely to shape pricing and production strategies in the coming months.
Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.
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