NSSC&JSP reduced purchase prices of Ni Scrap by JPY10/kg
2015/07/01On the back of currently ongoing LME nickel price falling, Japanese leading stainless steel manufacturer NSSC（Nippon Steel & Sumikin Stainless Steel Corporation）announced their suppliers that the company will reduce the purchase price of nickel-based stainless scrap for July by JPY10/kg compared to that for June.
Thus, their nominal price will be at JPY135-140/kg, but the prevailing prices seem to be at JPY140-145/kg.
LME price showed a significant decline to $10,800 at LME premarket on 30 June, which is on the verge of dropping below $10,000. Anticipating further drop, NSSC immediately decided to cut their purchase price. JSP belonging to NSSC groups also reduced their purchase price of nickel-based stainless scrap for July by JPY10/kg.
However, generation of scrap in the market continues to be less and tight. The prices of stainless scrap may not go down along with the sharp drop in nickel price.
The largest exporter, S company and other stainless steel manufacturers also reduced their purchase prices by JPY5/kg to wait and see the market. It’s necessary to watch the market for a while to see how the NSSC’s price drop of JPY10/kg affects the market. Rather, large price cuts by NSSC have been rarely accepted straightly by the market.
But, if the drop in LME nickel were the beginning of the further decline, the NSSC’s price cut might be mere precursor of things to follow.
The nickel-based scrap market remains in a downward trend with floating and bearish sentiment.
(Edited by Sasaki)