- Stainless steel demand subdued, but recovery seen in key sectors
- Nickel-based product inquiries improve, supporting sales recovery
Japan Metal Daily: Japan Steel has announced a price increase of JPY 5,000/t ($32/t) for stainless steel cold-rolled sheets under its November store sales contracts, applicable to both nickel and chromium series. The revision reflects the rise in ferro chrome prices during the October-December quarter, in line with the company’s alloy-linked pricing mechanism.
Ferro chrome prices climbed to $1.63/pound, up $0.10/pound from the previous quarter. Under the alloy linkage formula, half of this cost increase is factored into the November contracts, while the remaining half will be reflected in the December contracts, assuming exchange rates remain stable. Since August, cumulative price increases have reached JPY 15,000/t ($97/t) for nickel series and JPY 10,000/t ($64/t) for chromium series.
Although domestic stainless steel demand remains subdued, certain segments are showing recovery. Commercial kitchen equipment continues to perform well, while heating appliances have entered their seasonal demand phase. Inquiries for nickel-based products are also gradually improving, and the company’s thin plate mills are expected to operate at over 80% capacity through Q4CY’24 and Q1CY’25.
Imports of nickel-based cold-rolled sheets from China rose sharply in September, likely due to last-minute shipments ahead of possible trade remedy measures linked to anti-dumping investigations. Japan’s stainless steel industry is urging the government to accelerate trade remedy actions and is closely monitoring import trends from other countries such as Indonesia, Vietnam, and India.
Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.
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