Imported stainless steel scrap price rose in the week ended August 18 amid a gradual revival in demand. High demand from Chinese scrap importers are lifting global prices which have resulted in high scrap offers from the US and European countries.
The Davis Index for 304 (18-8) solids Tuesday rose by $3 to $1,244/mt cfr India port from the week prior. Demand for scrap is slowly increasing but suppliers have raised offers amid a rise in LME nickel prices. Few trades were heard but higher trades are expected this week, said Indian importers, as demand increased across sectors.
Prices of 304 (18-8) have hit at a-year high on the back of pent-up demand post the lockdowns. The 300 series scrap which is high in nickel content also rose on the back of the official three-month LME nickel gaining 3pc or $402/mt on Monday from the prior week. The Davis Index for 316 solids Tuesday rose by $4/mt and settled at $1,838/mt cfr India port. The prices of 316 also increased driven by LME molybdenum which rose to $8.1/lb, up by 8pc or $1/lb on Monday from the week prior.
In Taiwan, importing companies and mills witnessed a rush of demand this week as mills are ramping up production. The weekly price change in SS scrap imports for Taiwan was higher relative to import prices for cfr India port. The Davis Index for 304 (18-8) solids Tuesday rose by $45/mt to $1,190/mt cfr Taiwan port and the index for 316 solids rose by $95/mt to $1,820/mt from the week prior. Prices in Taiwan rose by 4-6pc from the prior week, while prices in India remained flat to up from the week prior. For the 300 series scrap, import prices for India has been on an uptrend since the last week of July.
The Davis Index for Zurik Tuesday rose by $63/mt to $1,045/mt from the week prior as nickel prices rose and so did copper. The official cash LME copper rebounded from the week prior by $75/mt to $6,363.9/mt on Tuesday supporting prices of Zurik. With stainless steel’s properties and the fact that it serves various sectors, demand is gradually increasing as the effects of lockdown wane-off.
The Davis Index for 430 solids was flat and settled at $409/mt on Tuesday from the prior week. Import prices of ferrous scrap also increased over the week which could lift prices going ahead. Importers are bidding at around $400-410/mt while the offers from Vietnam and Korea are still above $450/mt leading to low trades over the week.