The purchase price of nickel-containing stainless steel scrap (SABOT) by stainless steel mills in the Kanto in the latter half of February is down by JPY10,000 from the end of January, and many of stainless steel mills submitted the purchase price below JPY100,000 per ton (delivered at factory). This marked a new record low since May 2003. (Hereinafter, the price is per ton)|
As LME nickel price during 11th to 12th of February took a downward turn to a level close to US$7,700, the respective stainless steel mills and cargo pickup traders for export cut the price all together. This is also a result of a combination of several factors such as strong yen in the currency exchange, low consumption of stainless steel scrap stemming from slumping production of stainless steel by the end of March and the respective companies reducing in-hand stocks for the settlement of accounts toward the end of March in addition to cheap nickel.