POSCO holds purchasing price for SUS304 scrap for October unchanged
On October 1, Korean POSCO informed the suppliers of purchasing price for Japanese domestic stainless steel scrap for October.
It is said that POSCO decided to keep its purchasing price of SUS304 grade stainless steel scrap for October at the same level as in September after having a heated discussion with its Korean first vendor.
POSCO’s purchasing price is as the table below shows. SUS304 grade stainless steel scrap is unchanged from September at KRW1,300/kg, which is equivalent for JPY132/kg. If the company had decided the purchasing price in its accustomed manner, it would have dropped by about JPY5/kg along with nickel prices drop (*Average nickel price in September fell to $9,895 down by $460compared to August.), but the company kept the purchasing price unchanged.
Along with this, Japanese shippers such as Shinwasteel will keep their exporting price for Korea including for SeAH Changwon Integrated Special Steel at an estimated JPY135-137/kg CIF Korea, apart from the materials previously contracted at higher prices.
SUS316 grade stainless scrap price drops by KRW50/kg to KRW1,800/kg compared to September, which is equivalent for JPY183/kg. SUS430 grade stainless steel scrap price remains at JPY41/kg.
In Japan, special steel manufacturers announced to drop their purchasing prices for SUS 304 grade scrap for October by JPY5-10/kg. Just after the announcements, however, those manufacturers suggested another price to suppliers as scrap generation is in deficit. So, the market has gotten a little confusing. As Shinwasteel also announced to drop its exporting price by JPY5/kg, the current market price is expected to drop to JPY130/kg from JPY135/kg, the highest price in September. But, it is uncertain due to current shortage of generation in scrap.
NSSC, JSP and Nippon Yakin Kogyo, which have already announced their purchasing price of JPY120/kg mill delivered, have offered great flexibility on actual situation. So, they are expected to drop the price by JPY5/kg (JPY135→JPY130 or JPY125).
SUS400 grade (chrome-based) scrap price has continued to drop due to the price drop in ferrous scrap and ferrochrome and the declining export in chrome scrap. Daido Steel had dropped its purchasing price by JPY2/kg in September and announced to drop it by another JPY2/kg for October. The company’s purchasing price for SUS430 grade scrap is estimated to be around JPY34-36/kg.
（Edited by Sasaki）