[ferro-alloys.com]Japan's spot prices of austenitic CR sheet have declined as distributors are holding on to more stock, distributors in Tokyo said Thursday.

Market prices of austenitic stainless CR sheet in Japan have fallen by Yen 10,000/mt ($89/mt) from a week ago, its first decline since spring of 2016, distributors added.

Domestic spot prices of 2mm thick 304 grade CR sheet in Tokyo was at Yen 360,000/mt ($3,214/mt) this week amid a weaker supply-demand balance, they added.

A Tokyo-based distributor said that stainless CR sheet demand from long-term contract customers have been firm, keeping production at full capacity and limiting spot sales.

"But arrival of imported material are kept at high level, [and] it has lifted the stock level at distributors," he said.

Japan imported 13,881 mt of stainless CRC in August, up 53.8% year on year, and up 9.2% from July, the latest Trade Statistics of Japan data showed.

Another distributor said he believes market prices of stainless CR sheets would not continue to decline, because distributors have not completed passing the cost of producers' previous price hikes on to their customers. "We have to lift our prices, otherwise we will continue [in the] red figures," he said.

"Some distributors have started accepting lower-priced orders for them to secure sales volume, but many distributors are still keeping their prices unchanged, or still eyeing higher prices to secure [a] profit margin," he added.

Nippon Steel & Sumikin Stainless, Japan's largest stainless maker had increased the price of its austenitic CRC by a total of Yen 50,000/mt since October 2017, including a total price cut of Yen 20,000/mt since August, reflecting lower alloy prices.

(S&P Global Platts)

• [Editor:王可]