Japan: Nippon Steel cuts domestic stainless steel wire rod prices for Sep-Nov contracts

• Nickel-based SUS304 prices reduced by JPY 25,000/t ($158/t)
• chromium-based SUS430 down JPY 5,000/t ($32/t)

Nippon Steel has announced lower domestic stainless steel wire rod prices for September-November contracts, covering October-December rolling, reflecting changes in alloy-linked costs based on nickel, chromium and exchange-rate movements.

Prices for nickel-based SUS304 stainless steel wire rod have been reduced by JPY 25,000/t ($158/t), while chromium-based SUS430 prices have been lowered by JPY 5,000/t ($32/t).

The reductions mark the first price cut in five quarters for nickel-based grades and six quarters for chromium-based grades. Both categories had recorded price increases for four consecutive quarters through the previous August-October contract period.

Special grades see mixed adjustments

For special stainless steel grades, Nippon Steel will reflect changes in alloy costs according to the amount of alloying elements used.

Prices for SUSXM7 will be reduced by JPY 30,000/t ($190/t), while SUS303 prices will decline by JPY 25,000/t. SUS310S will see a larger reduction of JPY 65,000/t ($412/t).

However, SUS316 prices will remain unchanged, as the impact of sharply higher molybdenum prices offsets the decline in other alloy-linked costs.

Domestic demand remains mixed

In Japan’s domestic end-product market, demand from the construction sector remains subdued, while industrial equipment demand is showing signs of recovery. In particular, demand related to semiconductor manufacturing equipment and data centers continues to improve.

Automotive-related demand remains steady, although activity in overseas markets continues to be sluggish.

Import pressure remains a concern

Imports of stainless steel wire rod into Japan have remained broadly stable, averaging around 700 t/month during May-July.

Despite the limited change in import volumes, Nippon Steel remains cautious about potential import pressure. The company is monitoring the possibility that oversupply in Asia could encourage greater shipments of stainless steel wire rod and processed products into Japan.

Nippon Steel said it will continue to closely monitor import trends from various countries.

Note: This article is published as part of a content exchange agreement between JapanMetalDaily and BigMint.