Offers for imported stainless steel scrap 304 and 316 solids in India rose by over $30/mt on Tuesday followed by high offers heard for US and EU origins. Most indexes for SS scrap climbed on Tuesday, barring Zurik 85/3 which was pressured by low demand and bids in India.
The weekly Davis Index for 304 (18-8) solids on Tuesday settled at $1,833/mt cfr India port, up by $32/mt driven by rise in offers while demand remained tepid but expected to improve. The weekly Davis Index for 316 solids on Tuesday rose by $35/mt to $2,450/mt cfr India port.
Offers are up in line with a climb in LME nickel levels, the three-month contract rose by $663/mt to $18,307/mt, up 3.7pc in a week.
With mills still running under reduced capacities, demand has not recovered in the Indian markets, which has pressured scrap prices. Offers are up in line with nickel LME levels and global cues but not in sync with demand-supply balance in India.
The weekly Davis Index for Zurik 85/3 on Tuesday settled at $1,485/mt cfr India port, down by $57/mt, pressured by persistent low bids from Indian market players. Demand has dropped and mills are booking scrap only on a need basis and avoiding stocking, amid uncertainty around demand and prices.
The weekly index for 430 solids rose by $60/mt — driven by offers heard in the range of $740-750/mt levels — with the index settling at $748/mt cfr India port. Bids were heard under $730/mt from mills and most rejected these offers.
Market participants expect demand to improve from mills, now that COVID-19 cases are declining. Economical activities are expected to pick-up, with pent-up demand playing a positive part in raising prices.
Prices for Taiwan dipped on Tuesday with mills booking 304 (18-8) solids at around $1,535/mt cfr Taiwan port and 316 was booked at around $2,220/mt cfr Taiwan port, quoted major mills. The weekly Davis Index for 304 (18-8) solids settled at $1,535/mt cfr Taiwan port, down by $57/mt and the weekly index for 316 settled at $2,220/mt, down $78/mt. In the prior week, prices shot up with high demand ahead of the long weekend but demand has slid down to normal levels now, pulling indexes down with it.