Market price of SUS304 series stainless steel scrap decreased in Tokyo and Osaka when the supply increases from dealers’ inventory and offshore buyers in East Asia are reluctant to buy Japanese scrap. The market price decreased by 20,000 yen per tonne late last week dropping total 90,000 yen in 3 weeks when Nippon Steel & Sumikin Stainless Steel reduces the purchase price. Domestic stainless makers’ scrap inventory increases due to smooth arrivals despite of the lower consumption under output reduction. They reduce the output more to improve the supply balance when stainless products’ market price decreases. Stainless scrap export from Japan is slow for China and South Korea when the supply is more than the consumption in East Asia. Domestic building stainless demand is very slow when house and condominium building activity is slow due to confusion under new building standard law. A trading firm source said the lower stainless scrap price could reduce stainless steel products’ price.
Japan Steel Scrap Composite Prices (Sangyo Press)
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