Japanese Stainless Scrap Shows Lowering Tone in June

Japanese stainless steel scrap price for SUS304 is decreasing more fully when nickel price in London Metal Exchange, LME, decreased to US$ 44,510 by US$ 3,895 in Thursday from previous day. The scrap price went into reducing phase since June last year. Japanese stainless scrap price increased by about 300,000 yen per tonne from the beginning of this years. Stainless scrap market price’s mood drastically changed when Hikari works of Nippon Steel & Sumikin Stainless Steel Corporation carried out scheduled furnace repairing from Golden Week holidays in May and many makers kept the purchasing price of stainless scrap from May. Makers’ scrap acceptance recovered and their inventory increased when the inventory in the market flowed to dealers. LME nickel price kept over US$ 50,000 in the ended of May. However, Japanese makers reduced their purchasing price of stainless scrap due to recovery of scrap delivery from dealers. Dealer source said the supply and demand became loose when the scrap price doesn’t link to LME nickel price. Some makers are limiting their acceptance of scrap. Because LME nickel price reduced, stainless scrap market price is expected to more decrease. Makers are expected to reduce their purchasing price once again. Stainless scrap market price decreased by about 50,000 yen per tonne in May. Large dealer source said stainless scrap price may decrease by 30,000 yen per tonne in near future.