SUS304 scrap markets have become weak on a global basis along with the weak LME nickel prices. The yen values of Asian SUS304 scrap prices (SABOT) standing at $1,150-1160/t (CIF Taiwan, Korea) are about same level as domestic stainless steel manufacturers’ purchasing price level. As it is about JPY130 per kilo ex yard, it’s difficult to conclude a contract. However, considering the nickel market outlook, reduction of production in domestic stainless steel manufacturers and drop in scrap prices, it might be better because contracts could be concluded even at lower prices.

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