Imported stainless steel scrap prices rose, Tuesday, as demand continued to support prices. SS 304 and 316 gained while lower nickel grade, 430 slipped, marginally through the week.
The official three-month LME nickel contract on Monday slipped by almost 5pc in a week or $939/mt to $18,774/mt. Few buyers backed out of the market to gauge the situation, while sellers waited to see the market reaction before renewing offers. Some deals took place irrespective of the drop in LME levels and at the reigning market prices.
Despite the drop in LME nickel, SS scrap offers on Tuesday remained strong amid robust demand. The short supply of scrap is contributing to higher prices, said sellers.
The weekly Davis Index for SS 304 (18-8) solids on Tuesday settled at $2,117/mt cfr India port, up by $20/mt, driven by improving demand and supported by limited availability. Market participants expect prices to come down to $2,010-2,050/mt cfr levels in the following days as the markets might readjust to the drop in LME levels.
Several large mills turned away from new deals on Tuesday amid volatility. The Davis Index for 304 (18-8) solids for Taiwan settled higher by $60/mt to $1,568/mt cfr Taiwan port as offers were raised.
The weekly Davis Index for 316 solids on Tuesday settled at $3,054/mt cfr India port, up by $58/mt supported by short supply and a revival in demand. Higher offers were accepted by bidders. Like 304 solids, prices of 316 may also dip in line with LME. The Davis Index for 316 solids for Taiwan settled at $2,150/mt cfr Taiwan port, up by $35/mt from a week ago. UAE-based sellers opined that demand has slightly improved over the week.
Offers for Zurik 85/3 on Tuesday increased on tight supply. The Davis Index for Zurik 85/3 settled at $1,695/mt cfr India port, up by $45/mt in a week driven by higher offers for EU origins.
The weekly Davis Index for 430 solids on Tuesday settled at $791/mt cfr India port, flat to down by $2/mt driven by lower bids from domestic mills. Offers heard at $790-830/mt cfr India port while bids were around $730/mt. Mills resisted high offers to gain clarity on market direction.