- Imports hit record 12,751 t in Jan-Sep 2025.
- Industrial equipment orders slowed by US tariff-related impacts.
Japan’s nickel-based stainless steel welded pipe market, which has been soft for several months, is now showing early signs of stabilisation, with expectations of a potential bottoming-out as early as the beginning of next year. The shift comes amid manufacturers reporting rising sales prices, higher costs of stainless steel cold-rolled sheet, and expectations of price pass-throughs by distributors seeking margin recovery.
Prices of SUS304 welded pipe (50A x 3 mm) are now above JPY 810,000/t ($ 5,138/t) , down from last summer’s peak of JPY 950,000/t ($6,026/t). Prices have touched the high JPY 700,000/t ($4,441/t) range in bulk deals, reflecting deeper discounts.
Demand has been weak for over two years, with H1 FY’25 distribution sales down 5.1% y-o-y to 28,957 t, the lowest half-year volume since 2009. Inventories remain high, keeping pressure on spot prices.
Weak demand persists across industrial and construction sectors
Construction-related demand remains stagnant due to project delays caused by labour shortages. Industrial equipment orders, including semiconductor-related applications, have also slowed amid US tariff impacts. Distributors report limited signs of meaningful demand recovery.
Imported material keeps pulling prices lower
Imports of stainless welded pipes reached a record 12,751 t in Jan-Sep 2025, widening the price gap with domestic SUS304 by about JPY 150,000/t ($951/t). Imported material now accounts for nearly 10% of market share, dragging domestic prices down despite stable manufacturer pricing.
Regulatory shift may reduce import impact
From January 2026, Japan will introduce more granular HS codes for stainless welded pipes, enabling precise tracking of SUS304 imports. This could support future anti-dumping evaluations and improve long-term market discipline.
Outlook
With upstream price hikes, import scrutiny, and improving sentiment, the market appears close to bottoming out. A clear recovery, however, will depend on revival in construction activity and industrial demand.
Note: This article has been published in accordance with a content exchange agreement between SteelDaily and BigMint.
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