Imported stainless steel prices for India trended upwards on Tuesday from a week ago. SS 304 and 316 solids increased while prices for Zurik 85/3 and 430 solids rose moderately.
The official three-month LME nickel contract, Tuesday, rose by $172/mt to $19,620/mt from the prior week which supported the hike in offers. Demand in India has been expanding slowly, but market participants remain optimistic that the festive season will boost consumer spending.
Major consumers of stainless steel, the automotive sector, may reduce consumption as many manufacturers are forced to cut down production amid a short supply of semiconductors.
Offers of 304 and 316 rose by almost $30/mt in a week. The weekly Davis Index for 304 (18-8) solids on Tuesday rose to $2,186/mt cfr India port, up by $28/mt as offers rose to $2,180-2,200/mt driven by an increase in LME nickel. On Tuesday, domestic offers for the grade heard between Rs158,000-165,000/mt ($2,156-2,253/mt) delivered consumer. SS scrap supply in the international market is tight which is supporting the rise in offer prices.
The weekly Davis Index for 316 solids on Tuesday settled at $3,159/mt cfr India port, up by $28/mt as LME nickel rose, pulling scrap prices higher. Deals for 316 were heard at $3,160/mt cfr India port levels.
The Davis Index for 304 (18-8) solids for Taiwan settled at $1,460/mt cfr Taiwan port and the index for 316 solids settled at $2,193/mt cfr Taiwan port. Demand for imported SS scrap remains dull while offers have been rising on the back of LME nickel prices.
The Davis Index for Zurik 85/3 on Tuesday settled at $1,850/mt cfr India port, up by $3/mt from a week ago. Most offers remained at even levels compared to the prior week. Copper LME prices fell by $45/mt to $9,412/mt compared to the prior week which weighed on Zurik prices, however, the jump in nickel prices offset the drop.
The Davis Index for 430 solids on Tuesday settled at $796/mt cfr India port almost flat from the week ago. The index rose by $1 to the current levels. Offers were heard around $800/mt. Demand remains slightly subdued.
($1=Rs73.4)