SUS304 Scrap Price Keeps Upward in Japan

Japanese market price of SUS304 (18Cr-8Ni) stainless steel scrap maintains upward. Domestic market price is pulled up by steady scrap export for East Asia, especially for China. Stainless steel scrap generation keeps low while domestic stainless steel makers are relaxing output reductions. Scrap exporters had raised their scrap purchasing price and other scrap dealers started to follow the hike in June, according to a dealer source. The market price surged by around 10,000 yen per tonne around Osaka last week.

A scrap dealer around Osaka said stainless scrap generation is almost halving from a year earlier when demolition works are decreasing and stainless product demand is declining. On the other hand, Japanese stainless scrap export for China has exceeded average 10,000 tonnes per month this year. A trader source points out domestic scrap supply is tightening.

Nickel price at London Metal Exchange, the indicator for SUS304 scrap price, is steady at US$ 15,355 per tonne (US$ 6.96 per pound) on 25 June. This is another positive factor for SUS304 market price.