In India, prices of imported stainless steel scrap fell for 316 solids and 430 solids in the week ending November 3. In Taiwan price of 300 series grades fell driven by LME nickel’s 2pc drop over the week. The official three-month LME nickel contract on Monday settled at $15,148/mt, down by $270/mt from the previous Monday.
The weekly Davis Index for 316 solids on Tuesday fell by $29/mt and settled at $1,886/mt cfr India port amid mills cutting consumption and buying fewer quantities due to high costs, shared market participants. The weekly index for 304 (18-8) solids on Tuesday settled at $1,310/mt cfr India port, marginally up by $5/mt. Demand for 304 relatively exceeds 316 in India.
The weekly Davis Index for 304 (18-8) solids in Taiwan settled at $1,254/mt cfr Taiwan port, down by $11/mt. The weekly index for 316 solids settled at $1,815/mt cfr Taiwan port, down by $10/mt. Demand for stainless steel scrap is low in India and Taiwan as mills are taking stock of consumption levels from end-users in their respective countries. In spite of economies recovering, mill do not wants to overstock ahead of the festive and holiday seasons.
The weekly Davis Index for 430 solids settled at $450/mt cfr India port, down by $13/mt. Trading activities were sluggish as buyers in India are bidding around $415-420/mt cfr India port, leading to very few transactions. The weekly Davis Index for Zurik 85/3 Tuesday settled at $1,081/mt cfr India port, up by $36/mt driven by gradually increasing demand for the scrap.
Mills are waiting for scrap prices to fall, which traders said is unlikely as nickel LME is still on high edge and globally demand is rising despite COVID-19 disruptions. In India, with infrastructure projects picking pace along with auto production, demand from end-users is likely to rise in the coming weeks which should support prices.