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Soared Price Of Stainless Scrap Is Restrictively Influenced By Sharply Fallen Price Of Nickel
= Exporters Purchase This Scrap At Yen 230,000 / Ton As Much Lower Than Price Of Nickel Metal
In spite of the fact that LME nickel prices have fallen to a considerable extent, price of nickel-based stainless steel scrap (new clippings) to be collected from domestic sources has still remained on a high level. Stainless steel mills of Japan have decided on the beginning of August to purchase nickel-based stainless steel scrap for deliveries in August from domestic sources at Yen 220,000 per metric ton delivered to mills, which has been reduced by Yen 20,000 per ton from that settled for deliveries in the previous month of July. However, the exporters concerned have been still collecting nickel-based stainless steel scrap at Yen 230,000 per metric ton ex. yard, having fallen by Yen 10,000 per ton from that paid in July, and the market price of this scarp has fallen to a restricted extent as a whole.

Stainless steel mills of South Korea have also decided to reduce their purchase price of nickel-based stainless steel for deliveries in August, following the reduction of price for this scrap in Japan. However, an extent of the reduction in South Korea is Won 70 per kg., which is only 1/3 of the reduction decided in Japan. Since summer season has come in August, the activities to collect stainless steel scrap have slowed down and, accordingly, the supply situation of this scrap in Japan has become tight. The background is that price of nickel-based stainless steel scrap is fairly low in comparison with price of nickel metal and this aspect is stimulating an potential intention at stainless steel mills to purchase nickel-based stainless steel scrap at a reasonable price.

Also, reflecting a sudden and sharp fall of normal steel scrap, the volumes of stainless steel scrap to be delivered to the market are decreasing. The case to dispose of the stocked cargoes of stainless steel scrap to cope with this fall of normal steel scrap has been seen and, unexpectedly, many fabricators are disposing of the stocks of stainless steel scrap together with stocks of normal steel scrap.

The exchange rate of Japanese Yen against US-Dollar has suddenly weakened to a large extent from the end of last week but it is not known yet how does this weakened Yen rate influence on price of stainless steel scrap. However, it will be inevitable to put a certain impact on the profitability for export of stainless steel scrap. It is marked to see at which price do exporters purchase stainless steel scrap for collection in this week.

At all events, a merit to use nickel-based stainless steel scrap has changed somewhat for a steep fall of price for normal steel scrap (price of new shred scrap has now fallen by Yen 13,000 per metric ton from a peak of Yen 63,000 per ton) but an advantage of nickel-based stainless steel scrap, in comparison with price of nickel metal, has still remained.

A merit of nickel price contained in nickel-based stainless steel scrap is a lower level than 60% compared with LME nickel price for cash at present. As far as this merit of nickel price in this scrap is maintained, it is a natural tide for stainless steel mills to purchase nickel-based stainless steel scrap as much as possible, provided that mills still have a space to stock more this scrap. This means that the basic demand for nickel-based stainless steel scrap has been kept on a firm tone.

The calculation sheet on merit of nickel-based stainless steel scrap and the movements of prices for nickel-based stainless steel scrap in Japan during January of 2007 to the first half of 2008 are as per the tables shown below ;
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last modified : Tue 19 Aug, 2008 [16:53]
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