Weak Stainless Scrap Market in Osaka

Stainless steel scrap market price turned into weak for SUS304 grade around Osaka. The market slowed down with slower export transaction with Chinese buyers under higher yen rate after the strong market when Nippon Steel & Sumikin Stainless Steel increased the scrap purchase price for SUS304 grade in October and November. The lower nickel ingot price also cooled the market when nickel price decreased to less than US$ 30,000 per tonne for the first time in a month at London Metal Exchange. Stainless scrap market was strong under tight supply when lower scrap demand decreased the processing operations reducing the scrap supply for the market. The dealers tried to secure the materials both for domestic and offshore buyers at higher price than domestic stainless makers. The scrap market price increased by 20,000 yen per tonne in earlier the month in Osaka and Tokyo. However, the market gets cooler with slower export and lower nickel ingot price. The dealers try to liquidate the inventory scrap increasing the supply. Some stainless makers purchase offshore scrap to avoid heating up for the domestic scrap market. The domestic supply is still low level but some dealers expect the market price could decrease.