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Ni SUS Scrap Purchase Price Down by JPY5,000 - JPY10,000 Due to Cheap Ni
= Price is kept as it is in some areas by putting priority on cargo procurement =
Owing to the continuously-declining nickel price, the respective stainless steel mills decided to reduce the purchase price for nickel-containing stainless steel scrap (SABOT) by JPY5,000 - JPY10,000 per ton (delivered at Factory). In the Kanto area, the price has already been lowered since November 18, and the price cut from November 24 has been announced in the Chubu area.

The current LME nickel price for cash seller is US$8,885 per ton which is the same as a cheap price level right after Lehman Shock and represents a decrease of US$1,165 versus the beginning of November. Albeit the occurrence of SABOT is low and the situation of the procurement of spot goods being difficult continues, many mills have no other choice but to take a bold step of reducing the purchase price for stainless steel scrap due to the decreased price of steel products along with the nickel price.

What's more, LME nickel price is forecast to be situated in a strong anticipation of a price fall and in fact, if the nickel price continues to drop, there is a possibility the mills which held a price cut at a small range this time will again conduct a price cut in early December.

However, some of the electric furnace mills and cargo collectors for export which put priority on increasing the in-hand stocks were hesitant about price cut and held the pick-up price as it was, which means they offered the pick-up price relatively higher than other companies.

The market participants pay attention to their movement whether they will reduce the price in lockstep with other companies in early next month or not.
last modified : Fri 27 Nov, 2015 [09:59]
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