Higher Japan Stainless Steel Scrap Price

Stainless steel scrap market price increases by 5,000 yen to 100,000 yen per tonne for SUS304 grade in Japan. The supply gets tight under low level scrap supply while domestic stainless makers increase the production from the bottom. The scrap price is also lifted by higher raw materials cost when nickel ingot price reached US$ 19,000-20,000 per tonne at London Metal Exchange from US$ 15,775 in early July.

Japanese stainless scrap supply is very low due to domestic lower transaction and lower utilization of the using industry. A dealer estimates the scrap supply is around 50% of last year level. The scrap export reached 10,000 tonnes per month from January to May, which is historical high level. The higher export also reduces the domestic supply.

Domestic stainless makers increase the production level under recovering demand after inventory adjustment of the users and dealers. The stainless makers try to meet higher demand from China by increasing the production. A trader expects the stainless production keeps firm in September and the scrap supply could keep tight.