Imported stainless steel scrap prices rose marginally in the week-ending Tuesday supported by a rise in LME nickel contract but not by demand in India. Most indexes gained between $12-30/mt from the prior week. Offers heard were uniform on Tuesday.
Nickel three-month LME contract on Monday settled at $16,262/mt, up by $214/mt from the prior week. Nickel contract has attempted to recover from the Tsingshan induced slump and most scrap sellers are waiting for nickel prices to recover.
On Monday nickel contract fell by over 2pc to current $16,262/mt levels, rather sharply, after China’s warning on raw material prices pressured not just nickel, but other base metals too.
The weekly Davis Index for 304 (18-8) solids on Tuesday settled at $1,658/mt cfr India port, up by $12/mt. Deals were heard between $1,640-1,650/mt cfr India port on Tuesday. Offers were also heard exceeding $1,680-1,700/mt cfr India port. Europe-origin scrap offers were heard at the higher end of the range.
The weekly Davis Index for 316 solids settled at $2,251/mt cfr India port, up by $11, though limited trades were reported. Demand is hurt owing to a spike in COVID-19 cases. International prices also gained on the back of light jump in molybdenum prices alongside nickel prices.
Mills in India are likely to shift focus to domestic market with the dollar gaining against Rupee. The Rupee slumped to 75 a dollar from 73.3 against a dollar last week. For 304, domestic prices were in the range of $1,545-1,555/mt, a deviation of almost $100/mt from imported prices. Domestic prices could be elevated to be at par with the international prices but lockdown constraints in India and uncertainty of demand in the coming days have pressured domestic prices.
The weekly Davis Index for Zurik 85/3 on Tuesday settled at $1,403/mt cfr India port, up by $16/mt on the back of high copper prices. The LME three-month copper contract is up by $130/mt from the week prior to $8893.5/mt. The weekly Index for 430 solids on Tuesday settled flat at $648/mt cfr India port. Offers for the grade were heard around $640-650/mt cfr India port, with limited deals.
The weekly Davis Index for 304 (18-8) solids on Tuesday settled at $2,140/mt cfr Taiwan port, up by $12/mt. Prices moved in line with LME levels. Demand was termed flat on Tuesday by traders catering to Taiwanese markets. The weekly Davis Index for 316 solids settled at $2,140/mt cfr Taiwan port, up by $30/mt. The IMF raised its forecast for Taiwan’s GDP to grow to 4.7pc for 2021 recently which can be translated to growth of infrastructure and consumer durables among other sectors and could push demand for stainless steel.