Japan Stainless Steel Makers Raise Scrap Purchase Prices

Stainless steel scrap price keeps increasing in Tokyo area. Daido Steel raised its purchase price by 5,000 yen per tonne in March for stainless steel scrap of SUS304 grade, which contains 18% of chromium and 8% of nickel, after it raised the price by 5,000 yen in mid February. Nippon Yakin Kogyo raised its purchase price by 10,000 yen per tonne and Nisshin Steel by 8,000 yen for SUS304 scrap in late February. Nippon Steel & Sumikin Stainless Steel is also likely to raise the purchase price, though the firm has not announced yet. Nippon Metal Industry could raise its purchase price in mid March.Japanese stainless steel makers raised their purchase prices when the export price of stainless steel scrap increased. The exporter source said some scrap is exported at around 170,000 yen per tonne bound for southern China and South Korea. Japanese makers seem to set their purchase prices balanced with the export price in order to secure domestic scrap even at the high price. Makers’ purchase prices would increase more if the outflow of stainless steel scrap enlarges.