Japan: 304-grade stainless steel scrap prices fall JPY 5,000/t ($30/t) amid weaker LME nickel
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- Kanto scrap prices decline for first time since Dec’25
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- Weak mill buying largely balances tight scrap supply
Japan Metal Daily: Japan’s nickel-bearing stainless steel scrap market weakened during the week ended 10 July, 2026 , with 304 (18-8) stainless steel scrap prices in the Kanto region falling by JPY 5,000/t ($30/t) to the mid-JPY 220,000/t ($1,355/t) range. The correction follows a sharp decline in London Metal Exchange (LME) nickel prices, prompting manufacturers and exporters to lower procurement prices after nearly seven months of uninterrupted gains.
The latest price reduction marks the first downward revision since December 2025. Exporters initiated the price cuts early in the week, with several stainless steel producers subsequently reducing their purchase prices by JPY 5,000/t ($30/t) from 9 July. The weaker buying trend also filtered through to local scrap yards, putting additional pressure on spot prices.
The correction was primarily driven by falling LME nickel prices. Nickel values, which had climbed to around $8.8/lb in early May on concerns over Indonesian ore supply, have since retreated to nearly $7.3/lb. Expectations that Indonesia may approve supplementary RKAB nickel ore mining quotas have eased supply concerns, weighing on global nickel prices and, in turn, stainless steel scrap values.
Despite the price correction, scrap generation in the Kanto region remained limited. Market participants noted that manufacturing activity continues at subdued levels, restricting scrap availability. However, weak procurement from stainless steel mills has largely balanced the tight supply, resulting in a stable but sluggish market.
Industry sources indicated that sentiment remains cautious, with further downside risks if LME nickel continues to weaken. Market participants believe manufacturers could announce additional reductions in purchase prices should global nickel prices remain under pressure over the coming weeks.
Note: This article is published as part of a content exchange agreement between Japan Metal Daily and BigMint.
