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|Domestic Price Of Ni-Based Stainless Scrap Passes Over To New Year On Yen 70,000 - 75,000 / Ton|
|= Owing To Reduced Production Of Stainless Steel, Demand For Purchases Of This Scrap Has Been Still Depressed|
The price of nickel-based stainless steel scrap (new clippings) to be purchased by stainless steel companies of Japan from domestic sources has come down to a level of Yen 70,000 - 750,000 per metric ton delivered to mills as a general tendency and is anticipated to pass over to January of new year on this price level.|
In view of the case that specialized stainless steel companies in Japan have held back from last week to purchase nickel-based stainless steel scrap toward the end of this year, even the steeply fallen price of this scrap at present is still unable to induce mills to purchase newly nickel-based stainless steel scrap. Following a reduction of price for this scrap as seen in November, some of stainless steel mills have decided in early December to reduce further their purchase price of nickel-based stainless steel scrap by Yen 10,000 per ton and, consequently, domestic price of this scrap has fallen to a lower level of Yen 70,000 per metric ton delivered to mills.
Reflecting the decreased production of stainless steel products in Japan started from September, the total quantity of stainless steel products to be produced in Japan for the calendar year (January - December) of 2008 is estimated to be in the range of 3.36 - 3.38 million tons, having decreased by 3.3% compared with that (3.493 million tons) for the preceding year of 2007. However, in comparison with a scale of its monthly production (290,000 tons per month) as forecasted at the beginning of 2008, the monthly output of stainless steel products in Japan for November and December had decreased to half of that.
Also, a ratio of nickel-based stainless steel products to be shared in the whole output of stainless steel products for 2008 is anticipated to be 54.7%, having fallen by one percent from that (55.7%) for 2007. This tendency is thought to have a large possibility to be carried over to 2009. This matter is not negligible for suppliers of nickel-based stainless steel scrap and, accordingly, a weight of business to export stainless steel scrap from Japan is supposed to enlarge. However, under the present situation which the production of stainless steel in China and South Korea has become sluggish, exports of nickel-based stainless steel scrap from Japan to these two countries have been depressed and this aspect has put a pressure on Japanese exporters of this scrap.
The demand for stainless steel scrap from domestic market of Japan has more decreased than that as statistically indicated and the actual quantities of nickel-based stainless steel scrap purchased by Japanese stainless steel mills have fallen considerably. Many of stainless steel companies in Japan have been endeavoring to reduce their stocks of stainless steel scrap and to lower book prices of this scrap in preparation for settlement of accounts to be closed on the 31st March of 2009. As a result of this effort, domestic price of nickel-based stainless steel scrap in Japan has fallen to an extremely low level of Yen 70,0000 - 75,000 per metric ton delivered to mills. Nevertheless, a merit of nickel contained in stainless steel scrap is still nearly nothing on its calculation base (by deducting values of chrome and iron contained in scrap from price on material base of nickel-based stainless steel scrap).
The movements of prices for nickel-based stainless steel scrap in Japan during January 2007 to the 1st half December 2008 were as per the table shown below ;
|last modified : Mon 05 Jan, 2009 [11:58]|