LME nickel this week hovers around $18,800 and show further signs of going downhill. The stainless steel scrap market is kept in check.

These days, the prices of stainless steels of 300 series in Nanhai area drop slightly and scraps of 304 series remain at 11,000 yuan per ton (tax excluded).

Scrap traders, devoid of confidence over short-term LME nickel and stainless steel scrap prices, are prone to step up sales this month. However, small-sized scrap traders just tend to hold their inventories in low levels while large-sized ones follow suit as steel mills offer a price so low that most stainless steel manufacturers opt to make hand-to-mouth buying only.

According to market surveys, the stainless steel scrap market has remained lukewarm for quite some time and it’s less likely to pick up in June. Transactions are of no potential to break out of the doldrums as middlemen still signal strong reluctance to make replenishment. So, stainless steel scrap prices in June might well keep undulate in a narrow range.

Battered by environmental issues, small-sized steel mills in Jiangsu and Zhejiang areas have launched production cut in the off-season with productivity yet to catch up with that from the period last year.

Basically, transactions remain between old customers and new ones are far from enough. Consumption thus takes a hit and that’s probably the reason why manufacturers wouldn’t like to make a purchase. (Source: Lingtong Metal Information)