UP DATE Japanese SUSscrap Market Today increase？IRUNIV 2013/08/12
Japanese stainless scrap market buy at some high price from Korean dealers, and the circulating price stops at around 135 yen (SUS304, the same shall apply hereafter) due to the buying at high price of some special steel producers. Business slackens in sweltering summer heat (the circulation slackens since before summer) , there is no goods so the price goes up, here also involved the rising in nickel market price, the texture is steady, it's an exaggeration to say it bull?
However, as this August the mill takes a longer summer vacation than usual, there is also the scrap dealer who take a rest for more than a week. Saying, "The mill stops, and the goods do not appear in city. Because it costs an expense to move the facilities and to employ people, they decided to take a long rest this year”. The circulation is sluggish, and the market price stays up between the stagnation.
At Korean market, because KKM company, whose the regular for PSS (PoscoSpecialSteel), exchanged contracts at 3 times amount (500 tonne ×3 = 1,500 tonne) of the regular month, they seem to continue the buying price of 135-140 yen in North Kyusyu and Osaka, but a hard fight is reported. In North Kanto region, because M company collects 1,800 tonne due to the 18th anniversary, the current buying price is rising to 143 yen.
There is not clear either for Daido Steel or for exports, but judging from the basis of the current general pre-furnacing, the price is clearly high. The special steel producers have been stably high at the head of 150 yen of Aichi Steel. Because both stainless and stainless scrap didnot play a central role in it, it does not affect the cost of raw materials so much. Therefore, we consider it will continue the buying at high price of stainless scrap. You should know that as a real image of the market, NSSC, Nippon Yakin and Nisshin Steel, as well as each dealers of the said producers whose staple food is one stainless scrap are considering sourly the high price of the special steel producers.
The special steel producers, buy fast the scrap rather than buy the ground metal again, because they do buying at high price due to the allowance at the spot. It is not clear that even metal such as nickel and molybdenum be cheap, whether it is compliance or it influences the stock evaluation in settlement. It seems as though they avoid the metal stock, and buy scrap willingly. There is a rare case which they are stocked for export.
Anyway, today LME nickel market price is rising in the slack summer situation (exceed 14,000 dollars as of August 8th). The forcible high price must became common in the middle of the open stock market, and the stock market environment is gradually hardened to be bullish.
Perhaps the important demand of stainless products fails to rise as ever, as well as the product price. It is the market of 304 grades cold rolled coils by 2,100 dollars in Asia. Taiwanese producers cannot buy because of a 60% decrease in production, while India is out of touch. It is only Korea with the high price, but on the other hand we also heard that POSCO is working hard for the production of ferronickel. If they increase the input of ferronickel, then the demand for scrap should relatively decrease.
It is the domestic stainless scrap market conditions in midsummer during the interplay of strong and weak materials.