The Davis Indexes for stainless steel (SS) scrap imports for all grades registered an uptick with SS 304 seeing almost a 4pc jump in a week. Offers are rising globally for scrap with strong demand from South Korea and Far East nations. In India demand for SS finished products has dropped significantly in the past couple of weeks because of high prices of scrap.
The official three-month LME nickel dipped 1pc or by $183/mt and settled at $17,217/mt on Monday from the week prior. Despite this, offers were still sky-high and not competent enough for Indian markets, according to traders from the Middle East.
The weekly Davis Index for 304 (18-8) solids rose by $60/mt on Tuesday to $1,600/mt cfr India port. Higher offers pushed indexes up. The weekly index for 316 solids settled at $2,151/mt cfr India port, up by $13/mt.
The average global nickel prices are rising on the back of substantial demand for nickel batteries used in electric vehicles (EVs) and are expected to rise further. The current SS scrap prices are likely to rise or stay flat, while nickel is expected to stay strong.
The weekly Davis Index for 304 (18-8) solids on Tuesday rose by $22/mt to $1,434/mt cfr Taiwan port and the index for 316 solids settled at $2,120/mt cfr Taiwan port. Prices of 316 is slightly up, influenced by global molybdenum prices. The official three-month LME molybdenum contract is up by 3pc to $10.28/lb on Monday from the week prior, maintaining a steady uptrend. Demand for SS in Taiwan is stronger than demand in India.
The weekly Davis Index for Zurik 85/3, Tuesday, rose by $38/mt to $1,383/mt on the back of rising ferrous and SS scrap prices. The official three-month LME copper was almost flat from the previous week on Monday as it settled at $7,967/mt, supporting Zurik prices.
The weekly Davis Index for 430 solids rose to $605/mt on Tuesday, up by $4/mt. Importers are bidding about $50-100 lower than the current offers. The current price levels are expected to hold or rise as globally, demand for SS scrap remains high while demand in India is comparatively low, as mills are avoiding new deals at these record-high levels.