Japan: Nippon Steel keeps Jul’26 stainless steel contract prices unchanged

• • 300, 400 series prices kept unchanged on stable raw material costs

• • Recovery in semiconductor, shipbuilding sectors supports demand

Nippon Steel has kept its July distribution contract prices for stainless steel unchanged, citing limited movement in alloy raw material prices. The price freeze applies to 300-series stainless steel cold-rolled sheets and plates as well as 400-series stainless steel cold-rolled sheets.

The company follows an alloy surcharge mechanism linked to nickel, chromium, and foreign exchange movements. With fluctuations in these indicators remaining limited during July, alloy surcharges were maintained at the previous month’s level.

Despite the latest pause, Nippon Steel has steadily raised prices over the past year to reflect higher raw material costs. Since August 2025, cumulative price increases have reached JPY 105,000/t ($674/t) for 300-series products and JPY 45,000/t ($277/t) for 400-series products.

Manufacturing demand continues to improve:

Domestic stainless steel demand in Japan is gradually recovering across multiple end-use sectors. Demand for cold-rolled products has improved on the back of stronger orders from residential equipment, commercial kitchen appliances, and semiconductor manufacturing equipment.

Plate demand has also remained firm, supported by robust shipbuilding activity, while investments in artificial intelligence (AI), data centres, and energy and power infrastructure have further strengthened demand for stainless steel products.

According to industry distribution statistics, average daily stainless steel sales volumes in May exceeded the previous month’s level, indicating a gradual improvement in market activity.

Plant operating rates improve:

Reflecting stronger domestic demand, Nippon Steel’s stainless steel production facilities are operating at relatively healthy utilisation levels. The company’s cold-rolled sheet plant is running at around 90% capacity, while its plate mill is operating at approximately 80%, with cold-rolled operations showing the strongest improvement.

While imports of 300-series cold-rolled stainless steel from China and Taiwan remained limited in May, shipments from several other Asian countries continued to increase.

Nippon Steel stated that it will continue monitoring import trends and may seek additional trade remedy measures through the Japanese stainless steel industry if evidence of unfair imports emerges. The company also indicated it would review the application of Japan’s anti-circumvention framework if exports routed through third countries are identified.

Outlook:

Market participants expect Japanese stainless steel prices to remain broadly stable in the near term as alloy costs show limited volatility. However, improving domestic manufacturing demand and continued monitoring of import volumes are likely to remain key factors influencing pricing and supply dynamics in the coming months.

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