- Ferro nickel shortage supports aggressive buying
- Chromium-grade scrap remains largely stable
Japan Metal Daily: Japan’s Kanto stainless steel scrap market continued to strengthen this week, with nickel-based stainless steel scrap prices rising by another JPY 10,000/t ($62/t) amid persistent supply tightness and firm mill procurement.
Market participants reported that delivered prices for SUS 304 (18-8) stainless steel scrap increased to around JPY 220,000/t ($1,382/t), while some transactions were heard close to JPY 230,000/t ($1,445/t). The market has now recorded multiple upward revisions since early May.
The rally was mainly supported by low scrap generation and difficulties in ferronickel procurement, which pushed stainless steel producers to intensify raw material purchases. Yard operators also raised collection prices to secure volumes as availability in the spot market remained limited.
At the same time, firm global nickel prices continued supporting sentiment after Indonesia tightened nickel ore mining controls, increasing concerns over raw material supply across the stainless steel value chain.
However, the chromium-based stainless steel scrap segment remained largely stable, with only selective price revisions reported from some buyers.
Outlook
Japan’s nickel-based stainless steel scrap market is expected to remain firm in the near term amid tight spot availability, elevated nickel prices, and continued procurement interest from stainless steel producers.
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