The domestic price of nickel-based stainless steel scrap (new clippings) for deliveries in October of 2010 has started on a level of Yen 200,000 per metric ton, which has risen by Yen 10,000 - 15,000 per ton compared with that at the beginning of September. The prices to be paid by stainless steel mills for their purchases of this scrap are usually following those decided by dealers and, owing to the reality of high price on which negotiations for purchases are being taken place, stainless steel mills in Japan have to pay Yen 200,000 per metric ton delivered to mills for nickel- based stainless steel scrap. |
Main factors, which underpinned high prices prevailed in September, have been still carried over to October and, accordingly, there is a view in the market that domestic price of nickel-based stainless steel scrap is anticipated to maintain a firm tone. The reasons, why price of nickel-based stainless steel scrap moved to a high side in September, were (1) LME nickel price rose (The price on average in August was 9.713 per lb. and that in September rose to US$10.271 per lb.), (2) The operation at Posco nickel plant in South Korea is not in order and this negative aspect is supposed to continue for a long period (even after the maintenance was implemented in August, the operation is still on a low level). Therefore, the nickel consumers concerned have felt an anxiety for supply of ferro-nickel from Posco plant and are moving to increase their purchases of nickel-based stainless steel scrap from sources in Japan., and (3) In order secure actual cargoes of this scrap, some of specialized stainless steel companies are going to purchase nickel-based stainless steel scrap even at high prices.
The movements of prices for nickel-based stainless steel scrap in Japan during January 2009 to the first half 2010 are as per the table shown below ;