India’s imported stainless steel scrap prices rose by 5pc on a 4.2pc increase in the official three-month LME nickel contract. A supply shortage along with increased demand from Indian mills which have now reopened also drove the prices up.
Market sentiment was positive as trading activity increased with most Indian mills resuming operations as the government eased lockdown restrictions. Importers found it difficult to source enough scrap from countries such as the US, the UK and Europe as limited industrial activities there affected scrap generation. Few importers managed to source material from Canada and Malaysia to meet Indian demand, which is still weak, in their opinion.
The weekly index for 304 stainless steel scrap solids settled at $1,143/mt cfr India port, Tuesday, up by $50/mt, and the weekly index for 316 stainless steel scrap solids settled at $1,755/mt cfr India port, up by $25/mt. The index for 430 stainless steel scrap, however, fell by $10/mt to settle at $386/mt cfr India port, Tuesday.
The official three-month LME nickel contract settled at $13,010/mt, Monday, up by $525/mt from a week ago, hitting a four-month high. The LME nickel futures contract has recovered by 17pc since it hit its lowest, $11,142/mt in late-March. Currently, it is still 10pc lower than $14,370/mt in mid-January.