Stainless steel scrap market price is expected to keep weak around Osaka under oversupply with lower domestic consumption and export to Asia. A dealer source said the dealers build inventory when the domestic makers have overstock due to nickel series stainless output reduction and shift to chrome series output. The market expects lower price with makers’ output reduction though SUS304 grade scrap supply also decreases. The stainless makers reduce purchase volume of nickel rich stainless scrap and some makers stopped the purchase. Lower Japanese stainless scrap export volume also pressures on domestic market. The export decreased by 52% to 9,420 tonnes in July from June, which decreased to less than 10,000 tonnes for the first time since July 2003. The export to China decreased by 67% to 3,860 tonnes, which had kept more than 10,000 tonnes per month before.
Japan Steel Scrap Composite Prices (Sangyo Press)
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