Major factories in Japan reduced production of stainless steel

Stainless steel production at Japan's 6 major plants in October 2014 was 287,192 tons, down 5.7 percent from 304,514 tons in the previous month. This also represents a 6.1 percent reduction from a year earlier, with stainless steel yields of 305,891 tonnes.

In October, the production of several factories increased from the previous month, but at the same time, some factories began the process of adjusting production, as a result of which the total production for the given time period decreased compared to the previous month. Chiba Works of JFE Steel Corporation has become a plant whose production has drastically reduced the range.

Routine scheduled furnace repairs at Shunan Works of Nisshin Steel Company Limited and Kawasaki Works of Nippon Yakin Kogyo Company Limited took place in November, cutting stainless steel production, so overall production is expected to decline further from October.

Japanese stainless steel makers begin negotiating cold rolled (CR) stainless steel sheets for February shipment. With robust domestic demand returning, they are ready to launch export negotiations more aggressively than before. At the same time, the yen is depreciating, and they are going to negotiate at the price of 2500 - 2550 dollars per ton CFR.