NSSC Cuts Stainless Steel Scrap Purchase Price by 20,000 yen

Japanese stainless steel scrap price could level off for SUS 304. Nippon Steel & Sumikin Stainless Steel Corporation announced on Wednesday the firm reduced the scrap purchase price by 20,000 yen per tonne while special steel makers and scrap exporters keep the higher purchase price.

NSSC expects 36,000 tonnes production in September, which is 10% lower than August level and around 30% lower than the production capacity. The firm seemed to reduce the stainless steel scrap purchase price due to weak demand and decline in nickel price. Nickel price at London Metal Exchange was US$ 20,710 per tonne on Monday, which decreased for 3 trading days in a row.

On the other hand, Japanese stainless steel scrap exporters increase the purchase volume to secure the scrap for export when POSCO increased the scrap purchasing price in South Korea. A scrap dealer expects the scrap price could keep firm under low level supply even with lower domestic demand if the export price to South Korea would increase.