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No Movement Seen in SUS Scrap Price for Mid-July Despite Cheap Ni
=Due to possible generation decrease in summer and traders' resistance to price cut=
The price of nickel-containing stainless steel scrap (SABOT) Japanese stainless steel mills purchase remains unchanged from a level of JPY135,000 per ton (delivered at factory) in the beginning of July. Although the price of SABOT is also anticipated to be reduced in light of a continuous fall of LME nickel price, there is no movement at the moment and the price in the beginning of the month has been maintained.

What to be cited as a reason for the above is 3 points such as (1) Now, summer is a difficult season for collecting cargoes, (2) The price in the beginning of the month had a large decrease of JPY5,000 - JPY10,000 per ton versus the prior month and (3) Traders have a resistance to further price cut and are reluctant to deliver at a reduced price.

In the meantime, the international SABOT price has fallen in reaction to declining LME nickel price. Currently, the price meant for Korea is US$1,350 per ton (CIF Korea, SABOT), down by US$50 from the prior month. Furthermore, in Taiwan, the price is said to be around US$1,300 per ton (CIF Taiwan, SABOT) due to the reasons including the large-scale production curtailment by its domestic stainless steel mills.

Many of persons concerned with the market predict the price of SABOT in the Japanese domestic market also will go down soon due to the impact from the price reduction in the neighboring countries.
last modified : Fri 19 Jul, 2013 [13:56]
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