By Paul Ploumis 07 Sep 2015 Last updated at 01:45:16 GMT
Ni SUS scrap purchasing prices by stainless steel mills has declined further in Japanese Kanto region.
TOKYO (Scrap Monster):The continuing fall in LME Nickel prices has resulted in considerable drop in Ni SUS scrap purchasing prices by stainless steel mills in the country’s Kanto region.
The prices at the start of September this year ranged between JPY 125,000 and JPY 130,000 per ton delivered, which is significantly down by JPY 13,000 to JPY 10,000 when compared with the previous month. It must be noted that the purchase price of nickel-containing stainless steel scrap (SABOT) had dropped during July and August, mainly on account of reduced demand from stainless steel mills and extended fall in nickel prices.
According to trade sources, certain stainless steel mills are seen offering prices with reduced price cut. Majority of the mills in the region had implemented a price cut of JPY15, 000 per ton in late July and JPY10, 000 per ton in mid-August. Meantime, many mills announced further price cuts by JPY10, 000 per ton towards end-August and early-September, taking the purchase prices to sub-JPY 130,000 per ton levels. A few mills were still offering purchase prices above JPY 130,000 per ton.
Meantime, low SABOT scrap generation has impacted collection volumes of cargo for export. The pickup price managed to maintain slightly higher levels of JPY 130,000 to JPY 135,000 per ton as on September first week. However, the export pickup prices are likely to witness downward trend in future, depending on purchase price by South Korea and Taiwan. The export prices currently stand at $1,120 to $1,130 per ton FOB, as on Sep 1st.
Nickel prices had plunged heavily during the month of August this year, falling by almost 17% over the previous month. The Chinese move to devalue its currency triggered fears of further slowdown in metal demand, sending nickel prices to as low as US$ 9,100 per tonne from the highs of around US$ 11,000 per tonne during the previous month. Although, prices managed to recover from these lows, price volatility is expected to dominate raw material market, experts say.