Japan Stainless Scrap Price Drops by 20,000 yen/t

Japanese stainless steel scrap market price decreased by 20,000 yen per tonne for SUS304 series scrap with 18% chrome and 8% nickel when the domestic stainless makers reduce the output and nickel ingot price drops at London Metal Exchange. Nippon Steel & Sumikin Stainless Steel (NSSC) reduced the scrap purchase price by 20,000 yen in the week. Most of domestic stainless makers keep low level output. A trading firm source said NSSC is likely to increase the output in June and July but the output level is uncertain after September. The demand could keep slow when the makers reduce the scrap purchase volume. Lower LME nickel ingot price also reduced the stainless scrap market. The LME price decreased to less than US$ 22,000 per tonne in the week compared with more than US$ 28,000 in early May. Slower stainless scrap export from Japan also contributes to the dull market when Chinese stainless makers also reduce the output.