Japanese Stainless Scrap Export Keeps Active for China in May

Japanese stainless steel scrap export increased by 20.1% to 25,280 tonnes in May from the previous month, according to the trade statistics by Ministry of Finance. The export for China has exceeded 10,000 tonnes for 5 straight months while the export for South Korea has been below 10,000 tonnes for 2 months in a row.

The export for China was 14,790 tonnes in May, which kept almost as flat as April. Chinese import of ferrous and stainless scrap has expanded since the beginning of this year. The export for South Korea increased by 94.9% to 9,410 tonnes in May from April.

In Japan, domestic market price of stainless steel scrap is pulled up by the active export for East Asian countries. A scrap dealer said scrap generation volume is halving compared with a year earlier. Japanese export price for East Asia is higher than domestic market price under tight supply. In addition, Japanese stainless steel makers are recovering their output recently. The market price is also pushed up by stable nickel price at London Metal Exchange.