- Steelmaker cuts stainless wire rod prices
- Lower nickel prices drive revisions
Japan’s Nippon Steel has reduced prices for nickel-based stainless steel products, including wire rods and flat products, for September-November contracts, reflecting lower nickel and other alloy costs. The latest revisions mark the first quarterly reduction for nickel-based and chromium-based wire rods in several quarters, while demand remains mixed across Japanese end-use sectors.
Stainless steel wire rod prices lowered
Nippon Steel reduced its September-November contract prices for stainless steel wire rods by JPY 25,000/t ($169/t) for nickel-based SUS304 and by JPY 5,000/t ($34/t) for chromium-based SUS430 from the previous quarter.
The reductions mark the first decline for nickel-based wire rods in five quarters and chromium-based products in six quarters, following four consecutive quarters of increases for both grades.
Prices for special grades were also revised based on alloy content. SUSXM7 was reduced by JPY 30,000/t ($203/t), SUS303 by JPY 25,000/t ($169/t), and SUS310S by JPY 65,000/t ($439/t). The price of SUS316 remained unchanged, reflecting higher molybdenum costs.
The revisions were based on Nippon Steel’s Alloy Link mechanism, which incorporates movements in nickel, chromium and foreign exchange rates.
Nickel-based stainless sheet prices decline
For September distribution contracts, Nippon Steel reduced prices for nickel-based stainless steel cold-rolled and heavy plate products by JPY 15,000/t ($101/t) from the previous month.
This marks the second consecutive monthly reduction for nickel-based products following the August revision. Prices for chromium-based stainless steel cold-rolled products remained unchanged.
The September adjustment reflected lower average nickel and chromium prices and changes in the applicable exchange rate. The average nickel price used in the September calculation declined to $7.58/lb from $7.79/lb, while chromium fell to 164 cents/lb from 166.5 cents/lb. The applicable exchange rate also declined to JPY 161.67/$ from JPY 162.69/$.
Despite the recent reductions, cumulative price adjustments since August 2025 remain higher, with nickel-based products still up around JPY 80,000/t ($509/t) and chromium-based products around JPY 45,000/t ($286/t).
Japanese stainless demand remains mixed
Domestic stainless steel demand remains uneven across end-use sectors.
Construction-related demand continues to remain subdued, while industrial machinery demand is recovering, supported by semiconductor manufacturing equipment and data-centre investments. Automotive-related demand also remains relatively firm.
For cold-rolled products, demand from industrial machinery is improving, while some recovery is also visible in residential equipment and commercial kitchen applications. Distribution inventories are reportedly being maintained at appropriate levels.
Demand for heavy plates remains supported by shipbuilding, while investment in semiconductor manufacturing equipment and data centres continues to provide additional support.
Import pressure remains a concern
Nippon Steel noted that overseas stainless steel markets continue to see relatively low trading activity.
Japanese customs data showed stainless steel wire rod imports averaging around 700 t/month during May-July, with no significant change in import volumes.
However, the company expects potential oversupply in Asia to create future import pressure on the Japanese market for stainless steel wire rods and processed products. Nippon Steel plans to continue monitoring export and import trends across major markets.
Domestic distribution market remains firm
Despite the recent reductions in mill selling prices, Japanese distributors continue to reflect previously elevated purchase costs in their selling prices.
Market prices for SUS304 cold-rolled stainless steel are around JPY 630,000/t . Although domestic producers have reduced selling prices by a cumulative JPY 25,000/t ($159/t) across August and September contracts, actual transaction prices remain firm as distributors continue to pass through higher procurement costs.
Purchase costs are expected to decline gradually, but weak sales growth and rising operating expenses are putting pressure on distributor margins. As a result, distributors are expected to maintain their focus on selling prices in the near term.
Outlook
Nippon Steel’s latest price revisions indicate that lower nickel and alloy costs are beginning to filter into Japanese stainless steel pricing. However, firm distributor selling prices, mixed domestic demand and relatively weak overseas trading activity could limit the pace of price adjustments in the downstream market.
The Japanese market is expected to remain relatively tight in the near term, while Asian oversupply, import flows and movements in nickel, chromium and molybdenum costs will remain key factors influencing stainless steel prices.
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