Japan Stainless Scrap Price Rises by 5,000 yen/t

Japanese stainless scrap market price increased by more than 5,000 yen per tonne for SUS304 grade containing 18% chrome and 8% nickel when exporters offer higher price under higher nickel market price at London Metal Exchange. Japanese scrap dealers follow the move to increase the purchase price. The price could increase more under tight supply when Nippon Steel & Sumikin Stainless Steel (NSSC) plans to increase the output in October from September along with higher price expectation for LME nickel.

The stainless scrap market price decreased from late August to early September when stainless and special steel makers reduced the purchase price. However, the market hit bottom after the exporters increased the purchase price to ship mainly for South Korean buyers. The price increased to recover the drop since mid-September.

The exporters increased the purchase price by 5,000 yen per tonne to ship mainly for South Korean buyers. The domestic dealers also increased the purchase price increasing the market level. LME nickel price reached US$ 24,260 per tonne at settlement on Tuesday. The higher nickel price encourages the dealers’ purchase activity.