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While Stainless Production Is Reducing And Nickel Price Is Rallying, Price Of Stainless Scrap Remains
= Reduction Of Stainless Production In Jul.- Aug. Is Putting A Substantial Impact On Price Of Stainless Steel Scrap
Although LME nickel price has rallied to a level of US$20,000 per ton, the parties concerned are still watching carefully about further movements of nickel price and, accordingly, domestic price of nickel-based stainless steel scrap (new clippings) in Japan has remained unchanged at present.

Stainless steel companies in Japan have already entered into the structure to reduce their production of nickel-based stainless steel in the two months of July and August, while mills are scheduled to produce chrome-based stainless steel on a full scale until September, and, under this situation,, their purchases of raw materials are supposed to continue on a sluggish tone.

Stainless steel mills have aimed to purchase nickel-based stainless steel scrap at Yen 175,000 per metric ton delivered to mills for July shipment but, since LME nickel price has suddenly risen sharply, the quantity of this scrap to be collected from domestic sources is in the direction to decrease on a straight way. Even if the quantity of nickel-based stainless steel scrap to be collected in Japan has decreased, the requirement of this scrap from mills has also fallen and, therefore, stainless steel mills in Japan are thought to have been not confused by this aspect.

Processors and dealers, who have stocked stainless steel scrap, are also watching carefully about further movements of nickel price and wanting to know the level, at which nickel price will settle down. The world supply of nickel metal has turned to a shortage from February of 2010 and an evidence of this change is that LME nickel stocks are continuing to decrease.

However, the factors, which played the role of having underpinned nickel price on a level of US$20,000 per ton, are supposed to have exhausted. In view of seasonal factors in summer time, an atmosphere to gaze at further activities in production of stainless steel from September and afterwards is arising and a restless movement is so far not seen.
last modified : Fri 30 Jul, 2010 [10:23]
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