The TEX Report Topics < Ferro Alloys > Home
HOME >> Topics List >> October, 2008 >> 22 (Wed)
Price Of Domestic Ni-Based Stainless Scrap Falls To Yen 120,000 / Ton After Interval Of 4 Years
= Suspension Of Stainless Steel Production In China Accelerates To Fall Scrap Price
The price of nickel-based stainless steel scrap (new clippings) to be purchased by stainless steel companies of Japan from domestic sources has fallen to a considerable extent from the beginning of this week. The price of this scrap to be collected by exporters in Kita-Kyushu area has been at once reduced by Yen 50,000 per ton and new price for collection has fallen to Yen 100,000 per metric ton ex. yard. Accordingly, the price of nickel-based stainless steel scrap to be purchased by stainless steel mills has been reduced by Yen 30,000 per ton from the beginning of this week (from the 20th of October) and new prices to be paid by mills have come down to a level of Yen 120,000 - 130,000 per metric ton delivered to mills, having fallen by Yen 100,000 per ton only in October compared with that in the previous month of September and become nearly half of the price in September.

This price level of Yen 120,000 - 130,000 per ton has approached to a nearer level to that (Yen 115,000 per ton) paid by mills in June of 2004 after an interval of 4 years. For a reference, LME nickel price for cash at that time was US$6.14 per lb.

A trigger, having fallen price of nickel-based stainless steel scrap from this week to a large extent, is the factor arisen in China. It was informed from China that such major stainless steel companies of China as Zhangjiagang Stainless Steel Mill of Posco and Lisco have temporarily suspended their production in order to sustain prices of stainless steel products. Consequently, having felt a repugnance to the steep decline of stainless steel scrap to be exported from Japan, the mood prevailed in this market has at once weakened.

Exporters in Kita-Kyushu area have been constantly exporting stainless steel scrap in every month for mills of Posco in South Korea and China and the price to be paid for collection of this scrap has come down to Yen 100,000 per metric ton ex. yard but that in Tohoku area has still kept a level of Yen 120,000 per ton.

The quantity of nickel-based stainless steel scrap to be generated in Japan is estimated to be a level of 70,000 - 80,000 tons per month, including approximately 20,000 tons to be exported from Japan. More than 90% of stainless steel scrap exported from Japan is destined to South Korea and China but these exports are being restricted and, therefore, it is a natural movement that price of nickel-based stainless steel scrap in domestic market of Japan has been shaken. On this occasion, price of nickel-based stainless steel scrap in Japan is anticipated to continue a fall. In spite of a sharp fall of LME nickel prices, domestic price of nickel-based stainless steel scrap has been so far maintained on a high level but the case to reduce price of nickel-based stainless steel scrap in domestic market to a proper level corresponding to nickel price is supposed to be materialized.

On the other hand, Sabot price to import into Japan has become more nominal and is thought to be in the range of US$1,100 - 1,200 per metric ton CIF Japan at present. Index of Sabot price is that to be paid by mills in Pittsburgh area of the USA but an information of this respect is not obtained yet. However, according to a rumor, Sabot price paid in Pittsburgh area has fallen to a lower level than US$1,000 per ton.
The movements of prices for nickel-based stainless steel scrap in Japan during January of 2007 to the 3rd week of October of 2008 were as per the table shown below ;
data image
last modified : Mon 27 Oct, 2008 [11:09]
Copyright (C) 2004 The TEX Report Ltd. All Rights Reserved.