Lockdowns in most states of India has severely hit demand for stainless steel (SS) scrap, however, offers are rising in line with LME nickel levels. Prices have maintained an uptrend for the third straight week.
Majority of SS mills in India have halted production amid oxygen shortage and rising COVID-19 cases.
The official three-month LME nickel contract on Monday settled at $18,099/mt, up $214/mt from the prior week. In a month, LME nickel has climbed 11pc or by $1,837/mt.
The weekly Davis Index for 304 (18-8) solids on Tuesday settled at $1,795/mt cfr India port, up by $62/mt. Offers for 304 were heard between $1,790-1,810/mt while bids were below $1,780/mt as heard from a few major mills that are still operating. Demand for SS scrap from Asian countries has slowed down.
The weekly Davis Index for 316 solids on Tuesday settled at $2,375/mt cfr India port, up by $40/mt. Index is up on the back of hiked offers heard on Tuesday, despite low demand.
The weekly Index for Zurik 85/3 on Tuesday settled at $1,491/mt cfr India port, up by $22/mt, and might jump further given the sharp rise in global copper prices. Copper prices on the LME have jumped $762/mt to $10,720/mt on Tuesday from a week ago, which is likely to lift Zurik prices in the near-term.
The weekly Davis Index for 430 solids on Tuesday settled at $683/mt cfr India port, up by $23/mt. Offers for the grade were heard exceeding $700/mt cfr India port. Weekly ferrous prices have also increased by approximately $30/mt for imported ferrous scrap. Imported ferrous scrap prices in India have been rising over the week.
The weekly Index for 304 (18-8) solids for Taiwan settled at $1,482/mt cfr Taiwan port, up by $35/mt. Demand has slowed down but offers are up driven by LME. Offers for Taiwan has reached $1,490-1,510/mt on Tuesday. The weekly Davis Index for 316 solids settled at $2,150/mt cfr Taiwan port, up $38/mt.