Japan's production of stainless steel is expected to fall in November on a major plant turnaround and output cut following a fall in demand, market sources said Friday, November 21.

Nisshin Steel's output at the Shunan plant in west Japan will fall by around 40% as it closed for a regular turnaround during November 5-18, a company spokesman said.

Output at the Shunan plant, one of the five largest stainless steel facility in Japan, has been 30,000-50,000 mt/month, according to industry sources.

Another stainless steelmaker has started to reduce output of SUS304-grade steel in the second half of November, as demand for stainless steel has fallen following a decline in nickel prices, prompting end-users to hold off buying in anticipation of lower stainless steel prices, said a mill source.