Stainless Steel Scrap Price Declines with Weaker Nickel Market

The market price of stainless steel scrap decreased by around 20,000 yen per tonne in Osaka this week from last week for SUS 304 with 18% chromium and 8% nickel. Japanese most stainless steel makers reduced their purchase prices of stainless steel scrap by 20,000 yen per tonne on June 14, when nickel price at London Metal Exchange decreased to US$ 19,000 per tonne on June 13 from US$ 23,030 on May 31. Inventory adjustment of stainless steel products has advanced well in the market and stainless steel demand is increasing mainly for flat products. Most stainless steel makers raised their purchase prices by more than 50,000 yen per tonne since February, when both domestic and overseas orders were increasing for stainless steel scrap and LME nickel price jumped up. Dealers expect the market price would depend on the fluctuation of demand and LME nickel price for a while.