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| Price Of Domestic Stainless Steel Scrap May Fluctuate From Mid December For Higher Nickel Price |
| = Sabot To Import Into Japan Is Being Offered At US$1,300 - 1,350 Per Ton CIF |
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It can be said that the price of nickel-based stainless steel scrap ( new clippings ) to be purchased by stainless steel mills in Japan for deliveries in December from domestic sources has started by shifting to the actual price paid as symbolized by a rise of Yen 5,000 per ton at mills in Nagoya area. Many of stainless steel mills announced to remain their purchase price of stainless steel scrap for December as unchanged from that for November but the actual price to be paid is necessary to be higher in order to secure the actual cargoes of this scrap. A reduction of Yen 5,000 per ton for stainless steel scrap decided on the 21st of November by mills in Nagoya area has differed far from the actual price prevailed in the market and is hardly possible to be followed by other mills. Therefore, Daido Steel and Aichi Steel decided on the beginning of December to rise price of stainless steel scrap by Yen 5,000 per ton in order to balance the price to be paid by them. Following the aspect in November, it is still difficult basically to collect stainless steel scrap and, on the other hand, LME nickel price has risen to a higher level than US$13,000 per ton, which is faster than a pace to rise price of nickel-based stainless steel scrap. Reflecting a sharp rise of LME nickel, Sabot price to import into Japan has already risen by approximately US$100 per ton to US$1,350 per ton CIF as high side and US$1,300 CIF as low side in comparison with those in November. Accordingly, Sabot price has risen as mentioned above without referring to the zigzag movements of price for stainless steel scrap as seen in the domestic market during late November to early December. Some exporters in Japan have contracted with South Korean mills to export stainless steel scrap from Japan to South Korea but suffered from the difficulties to collect this scrap from domestic sources as scheduled and a factor to collect stainless steel scrap even at higher prices has arisen. In view of this aspect, the price of nickel-based stainless steel scrap to be collected from domestic sources has a large possibility to rise to a considerable extent from the middle of December and afterwards. Posco of South Korea has reduced their purchase price of nickel-based stainless steel scrap by Won 40 per kg. for deliveries in December from domestic sources but is supposed to have to propose a realistic price for Sabot to import into South Korea. The movements of prices for nickel-based stainless steel scrap in Japan during January 2003 to December 2005 were as per the table shown below ; |
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| last modified : Wed 14 Dec, 2005 [10:41] |
