Stainless Scrap Price Up by 15,000 yen/t in Osaka

Stainless scrap market price increased by 15,000 yen per tonne for SUS304 series grade with 18% chrome and 8% nickel around Osaka. Domestic stainless makers increased scrap purchase prices by 10,000-19,000 yen in May when nickel price surged at London Metal Exchange since the end of March. Local scrap price increased by total 30,000 yen in a half month including 15,000 yen increase in mid-April.The LME nickel price was US$ 19,200 per tonne on Monday. The price increased by around US$ 400 from US$ 15,340 at the end of March though the price decreased the peak of more than US$ 20,000. The local scrap market keeps strong mood when a local dealer source said the scrap price could increase more if the LME price keeps the high level.Domestic stainless steel makers reduce the output reduction rate when stainless products inventory decreases. A distributor source said the market has no factor for potential oversupply when Nippon Steel & Sumikin Stainless Steel plans maintenance in May.Domestic scrap dealers increase the selling price when the exporters increase the purchase prices more than domestic stainless makers. The market price is likely to keep increasing with support by higher export price.