Domestic SUS 304 grade scrap market sees inflation caused by material shortage
2016/03/17SUS 304 grade scrap prices rose not only in domestic market but also in overseas markets last week (March 7-11).
In Europe, prices rose by about $30/t, and the market prices closed up to $990/t in the US.
In India, prices rose by nearly $20/t to $990/t (CIF Nhava Sheva).
The prices rose because nickel prices increased during the 1st week of March and market prices in Europe and US are rising due to accumulation of stock in traders who are reluctant to sell.
In Japan, scrap purchasing prices have kept at a higher level since Sanyo Specialty Steel increased production instead of Aichi Steel. Other stainless steel manufacturers and special steel manufacturers have followed this trend. In addition, it is reported that traders concerned have started to purchase scrap at higher prices in the western part of Japan as KOBELCO (Takasago)’s stock has tightened. The mainstream of the delivered prices has moved to JPY110 per kilo from JPY100 per kilo. And, JPY115 per kilo is the highest.
Not only shortage of generation but also upward trend growing in the market has made scrap suppliers bull. The current market is certainly for the buyers.
NSSC and JSP have kept silence till now, but they have already realized the current inflated market of the nature of speculative factors. In this situation, the “grand champions” have no other choice to move in protecting distribution.
Though an exporter to Korea have not yet changed their purchasing prices openly, they might take some step to the current market in the western Japan where the prices have kept highest level in Japan or in the world.
The said increased production in Sanyo Specialty Steel is said to continue just before summer though Aichi Steel has already resumed melting stainless steel.
LME nickel prices are around $8,800 at the moment. The dollar-yen rate has kept around JPY113 for the past few weeks.