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JapanMetalDaily: Ni-based stainless steel (SUS) scrap prices in Japan’s Kanto region declined further by JPY 5,000/t($32/t), reflecting persistently weak domestic and overseas demand. Major scrap shippers reduced their purchase prices by JPY 5,000/t ($32/t) from 18 December, while some stainless steel producers followed with similar cuts effective 22 December, extending the downtrend seen since early December.
As of 22 December, furnace-front prices for Ni-based SUS scrap (18-8 grade) were assessed at around JPY 180,000/t ($1,153/t). However, certain mills continued to maintain higher buying levels near JPY 190,000/t ($1,217/t), largely due to differences in contract structures. This has resulted in a widening price gap at the furnace level, highlighting uneven procurement strategies across producers.
Export weakness and LME nickel weigh on sentiment
Market participants attributed the recent price cuts primarily due to sluggish export demand, particularly from South Korea, which remains a key destination for Japanese stainless scrap.
Low production persists despite year-end season
Domestic stainless steel production remains subdued, with mills continuing to curtail output amid weak finished product demand. Some producers cited demand erosion beyond earlier expectations, prompting additional price adjustments despite the year-end period. Nevertheless, yard operators indicated that scrap availability remains tight, suggesting limited downside potential going forward.
While prices have softened, participants noted that the uptick in LME nickel prices and the ongoing depreciation of the yen could offer near-term support. As a result, many in the market believe the pace of decline may slow, even as overall demand conditions remain challenging.
Note: This article has been published in accordance with a content exchange agreement between JapanMetalDaily and BigMint.
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