In light of slumping LME nickel price, respective stainless steel mills in Japan lowered a purchase price of nickel-containing stainless steel scrap (SABOT) by JPY5,000 - JPY7,000 per ton from the prior week (3rd week of April). Consequently, the purchase price by stainless steel mills is around JPY140,000 (ex-factory) at the moment. Incidentally, this price is cheaper by JPY20,000 per ton as compared with the soared market in February - March.|
For a reference, the current export market for nickel-containing stainless steel scrap meant for China is US$1,520 - US$1,530 per ton (CIF Tianjin), down by more than US$100 from the market level in March. This is just because of LME nickel price dropping. Accordingly, the purchase price by exporters in the Japanese domestic market dropped to a level for a domestic price of JPY140,000 per ton (delivered at export yard). At the moment, the export trading is now firm meant for Taiwan only, and is remaining at a low level meant for China and Korea which can't be a factor to withhold a price drop.