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Lowered Nickel Price Accelerates Mood To Reduce Price Of Domestic Stainless Steel Scrap
= Marked To See How Do Stainless Steel Mills Move On This Matter After Summer Holidays Are Over
In the course of that LME nickel price is weakening on a basic tone, it is marked to see how does price of nickel-based stainless steel scrap ( new clippings ) to be supplied from domestic sources move. A judgment to be made by stainless steel mills of Japan, which is whether price of this scrap is reduced from the 17th of August so-called as " summer holidays are over " or a reduction of the scrap price is carried over to September depending on quantities to be collected, is still opaque.

By means of rowing with the tide which LME nickel price had fallen from March of 2004, stainless steel mills had reduced their prices to purchase nickel-based stainless steel scrap by Yen 35,000 - 37,000 per ton in total during March to June. However, LME nickel price had suddenly risen steeply by US$3,000 per ton in July and, accordingly, stainless steel mills were driven to rise twice their prices for purchases by Yen 30,000 per ton in total ( by Yen 15,000 per ton respectively ) in July. An effect of these reductions done in March to June has been offset at once.

As some of dealers proposed in advance to rise price of nickel-based stainless steel scrap by Yen 40,000 per ton compared to that paid in June for collections in July, it was strongly felt that price of this scrap was led by dealers.

Stainless steel mills have firstly remained unchanged on price of nickel-based stainless steel scrap to be delivered from domestic sources in August but this treatment has left a factor to reduce price of this scrap depending on movements of LME nickel price to be seen from the middle of August. Nevertheless, the quantity of stainless steel scrap to be collected in August is decreased for a reason in summer time. Namely, this decision is cautious one but, reflecting lowered stocks prices, weakened US-Dollar currency and soared oil price, LME nickel price has at last fallen to a lower level than US$13,000 per ton.

As nickel price has weakened, the factors to reduce price of nickel-based stainless steel scrap are concreting but, on the other hand, the followings are unstable factors for a reduction of price for this scrap ; (1) Sabot price to be purchased by mills of Pittsburgh in the USA has been still kept on a high level of US$1,475 - 1,500 per ton., (2) Reflecting this high level of Sabot price in the USA, Sabot for import into Japan is being offered at US$1,400 - 1,450 per ton CIF with a reduction of only US$50 per ton, having still kept a high level., (3) Even after summer holidays are over, the work to collect stainless steel scrap is started from the 18th to 20th of August on a substantial scale and, therefore, it is wondered whether the circumstances to reduce price of this scrap are prepared as expected by mills to be responded or not., and (4) The work to collect nickel-based stainless steel scrap from domestic sources for exports from Japan is how to move. These matters will make difficult to reduce price of this scrap during August.

The movements of prices for nickel-based stainless steel scrap in Japan during January 2002 to August 2004 were as per the table shown below ;

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last modified : (Wed) 18 August, 2004 [10:11]
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