SUS304 Scrap Market Price Rebounds after 2 Months, Osaka

Market price of SUS304 stainless scrap increased around Osaka. The price rebounded for the first time in recent 2 months. A local scrap exporter to South Korea raised its scrap purchasing price last week and other scrap dealers dealing stainless scrap for domestic consumers followed the hike. The market price upped by about 10,000 yen per tonne for new cutting SUS 304 scrap. One dealer analyzed the price increased when scrap supply tightened and nickel price surged at London Metal Exchange (LME).

Domestic SUS304 scrap market price declined in mid November. The export demand weakened due to strong yen trend while scrap inventories increased at domestic stainless steel makers. Japanese stainless steel makers and special steel makers lowered their scrap purchasing prices as well as scrap exporters.

LME nickel price, the indicator, temporarily declined to US$ 21,000-22,000 per tonne in mid November while rebounded to US$ 24,880 as of Monday. Japanese stainless scrap market price is pushed up by high export price and LME nickel price, said a dealer source.