- Steelmakers raise purchase prices to stimulate scrap arrivals
- Stainless steel production remains low despite scrap price hike
JapanMetalDaily: Japan’s nickel-based stainless steel scrap prices in the Kanto region recorded a sharp rebound this week. Prices rose by JPY 10,000/t ($63/t) as mills moved to encourage inflows amid tighter availability and stronger global cost cues.
Several manufacturers informed suppliers of a JPY 10,000/t ($63/t) hike from 13 January, effectively reversing the JPY 5,000/t ($31/t) cut announced at the end of December. The move was aimed at stimulating scrap arrivals, as inventories were thin.
The price increase was driven largely by a renewed uptrend in LME nickel prices and a weaker Japanese yen, both of which lifted replacement costs and raised concerns over future supply costs. Following the revision, nickel-based SUS 18-8 scrap prices before furnace are now assessed in the mid-JPY 190,000/t ($1,197/t) range in the Kanto market.
Market participants noted that the regional scrap market entered a downtrend in late November 2025, but sentiment improved from late December as global nickel prices rebounded. However, despite the recent price recovery, stainless steel production remains low, limiting any sharp improvement in underlying demand.
Yard traders cautioned that while currency depreciation and rising nickel prices are providing strong cost-side support, the domestic supply-demand balance has not changed materially, making the sustainability of the price rally uncertain in the near term.
Note: This article has been written in accordance with a content exchange agreement between JapanMetalDaily and BigMint.
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