Stainless steel scrap prices were mixed in the week ending Sep 15 with 304 solids dipping by almost 2pc in India while 316 gained on the back of molybdenum prices gaining in the same period. The official three-month LME nickel dipped by 1pc on Monday from the prior week to $15,134/mt.
The Davis Index for stainless steel scrap 304 (18-8) solids dipped by $28/mt to $1,306/mt cfr India port on Tuesday from the week prior driven by LME nickel. Demand for 304 is stable, but prices may settle lower in the coming weeks, said traders, as demand from South Korea and Taiwan has fallen slightly in September.
The Davis Index for stainless steel scrap 316 solids rose by $12/mt to settle at $1,900/mt cfr India port from the week prior. Prices in Taiwan, however, fell with the Davis Index settling at $1,855/mt cfr Taiwan port, down by $5/mt from the preceding week.
Taiwan’s markets for stainless steel gained momentum slowly which resulted in strong demand for SS scrap throughout August but dipped slightly from the first week of September depicting a slump in the market. The Davis Index for SS 304 (18-8) solids settled at $1,855/mt cfr Taiwan port down by $5/mt from the week prior.
The Davis Index for Zurik 85/3 settled at $1,120/mt up by $45/mt from the week prior on the back of average copper prices hovering at a higher level and stainless-steel scrap demand gradually rising. The Davis Index for 430 solids also rose by $5/mt on the back of healthy demand for chrome-based scrap material and settled at $473/mt cfr India port on Tuesday from the week prior.
Growth of infrastructure and auto sector coupled with improved demand for household goods will drive prices of stainless steel scrap in the coming weeks. Uncertainties, however, loom amid volatile nickel prices and rising cases of COVID-19, said market participants. On the brighter side, demand for white and brown goods that had slipped during COVID-19 lockdowns is expected to rise with the festive season in India.