In the week ending Oct 20, prices of stainless steel scrap rose for major grades on Tuesday from a week ago, driven by high offers amid LME nickel’s climb. LME nickel grew by $447/mt and settled at $15,704/mt on Monday from a week ago.
The weekly Davis Indexes for SS 304 (18-8) solids rose by $7/mt to $1,304/mt cfr India port and for SS 316 solids rose by $19/mt to settle at $1,897/mt cfr India port on Tuesday. Demand from mills is gradually sliding on accounts of Diwali break when most mills will be shut. Scrap offers from US and Europe were raised on the back of high LME nickel prices but with low demand from end-users in India, prices were pressured.
In Taiwan, the weekly Davis Index for SS 304 (18-8) solids settled at $1,253/mt cfr Taiwan port, up by $18/mt on Tuesday backed by steady demand from the mills. The weekly index for 316 solids rose to $1,860/mt to $15/mt cfr Taiwan port.
The weekly Davis Index for SS 430 solids Tuesday settled at $446/mt cfr India port, up by $1/mt. Several mills booked SS 430 solids during the week but some traders feel the demand will not last long. The Davis Index for Zurik 85/3 settled at $1,038/mt cfr India port, down from the previous week by $12/mt. Prices of Zurik fell slightly as LME copper slipped slightly by $14/mt to $6,755/mt keeping prices of copper scrap in check and pulling Zurik’s prices down.
Stainless steel scrap prices might rise by the next week owing to LME nickel rising off the back of high demand from battery makers and car manufacturers. There is a marginal shortage of material, said traders importing SS scrap from the US with some eyeing Mexican markets for competitive prices amid the high offers from US and European origins. On the other hand, domestic demand from mills is still low and is expected to remain so until the economy recovers from the pandemic’s effect.