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|SUS Scrap Market in Oct. Starts with Same Level as Prior Month|
|=Demand from domestic mills is active before furnace repair and POSCO' purchase price is a little bit down=|
The price of nickel-containing stainless steel scrap (SABOT) to be purchased by Japanese stainless steel mills in October has started with the same level as the prior month of JPY143,000 - JPY144,000 per ton while carrying over the actual condition in September.|
Among domestic stainless steel mills, Nisshin Steel Co., Ltd. and Nippon Yakin Kogyo Co., Ltd. are scheduled to have a furnace repair within this month and in November - December respectively, and therefore the demand for stainless steel scrap is anticipated to go up due to the production ahead of schedule by these two mills.
However, as this increase in demand is short-term and will calm down later, the future price is expected to be somewhere around JPY142,000 - JPY143,000 per ton, down by JPY1,000 per ton from the present level, but the stainless steel mills are targeting at JPY135,000 per ton as one of the purchase prices.
For a reference, some information states October purchase price by POSCO, Korea resulted in reduction by KRW70 per kg (= JPY6.3, conversion rate is JPY1 = KRW11). Although there was a forecast the price cut will be KRW100, it hasn't gone down to that level.
As now Won is appreciated compared with a month ago, in comparison with September shipment price for POSCO to be exported from Japan, the price is down by JPY2,000 - JPY3,000 per ton. Although the price cut is small, some forecast shows the trading price by the export dealers meant for Korea in the northern part of Kyushu area will be affected, and the focus is now on what's going to happen in the future.
|last modified : Wed 09 Oct, 2013 [18:50]|