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|Price Of Domestic Stainless Steel Scrap For November Is Risen By Yen 30,000 / Ton|
|= In Anticipation Of Matters To Increase Stainless Production In November And To Rise Further Scrap Price|
The price of nickel-based stainless steel scrap ( new clippings ) to be purchased by stainless steel companies for deliveries in November from domestic sources has been decided to be risen by Yen 30,000 per ton. The scrap price for October was risen by Yen 30,000 per ton and, accordingly, a rise of price for nickel-based stainless steel scrap for deliveries in two months of October and November has totaled to Yen 60,000 per ton. In consequence of these rises, new price of this scrap is thought to come to Yen 290,000 - 300,000 per ton delivered to mills.|
However, the reality of price for nickel-based stainless steel scrap in the market ( paid by dealers to collect this scrap ) has already risen from the middle of October to a higher level than Yen 300,000 per ton ex. yard and, therefore, a rise of Yen 30,000 per ton for November has confirmed this movement in the scrap market.
The average price of LME nickel in October was US$14.08 per lb. for cash, having recovered to a level of US$14 per lb., LME nickel price itself has trended to be an upward direction. At the stage which price of nickel-based stainless steel scrap in Japan has risen to a level of Yen 300,000 per ton, this Yen price is equivalent to US$10.75 per lb. of nickel, corresponding to 76% of LME nickel cash price at the 31st of October ( US$14.016 per lb. ) but a feeling of comparatively lower nickel price in the scrap is not rectified yet. However, in comparison with US$8 - 9 per lb. of nickel in stainless steel scrap seen in July to August, the matter, having felt an extremely lowered nickel price in this scrap, is in the direction to rectify. This improvement of nickel price in stainless steel scrap has been stimulated by a recovery of cargoes to be collected for exports.
Stainless steel mills in Japan so far maintained the structure to decrease their production of stainless steel but are now turning to increase the production from November. Such major stainless steel companies as Nippon Steel & Sumikin Stainless Steel, Nippon Metal Industry and Nisshin Steel are scheduled to remove cutback of stainless steel production and to increase their production on the basis of active exports of stainless steel products. Therefore, it is expected that the movements to collect stainless steel scrap from domestic sources will regain its activity. On the other hand, reflecting a dullness on consumption of stainless steel products in Japan, the quantity of stainless steel scrap to be generated from domestic sources has slowed down and, accordingly, the supply situation of this scrap in Japan has tightened.
Under the circumstances, there is a strong possibility that dealers will rise again price of nickel-based stainless steel scrap to be collected from yards.
|last modified : Wed 07 Nov, 2007 [10:20]|