Reports from Japan suggest that speciality steelmakers in the country are postponing the renewal of their annual nickel supply contracts as consumption falls in the weak global economy. In addition customers are shifting to spot purchases from the company's only nickel producers, Sumitomo.
Two Tokyo based traders negotiating contracts on behalf of steelmakers said that their customers have decided not to renew contracts in January as weak automotive and housing demand has forced them to cut output. One trader said that his customers' high inventory levels means they can survive without buying until March.
One steelmaker is reported as saying that they are pushing back long term procurement decisions as the outlook remains unclear. He added that "Our customers in the housing and ship building sectors are badly hit. They are not able to make long term plans, and we cannot draw our plans either."
No comments:
Post a Comment