The weekly Davis Index for SS 304 (18-8) solids Tuesday settled at $1,556/mt cfr India port, up by $24/mt as offers for scrap continue to rise. Some traders in the Middle East offering over $1,650/mt cfr India port levels, failed to strike a deal. Some deals settled at $1,600/mt cfr India port and others around the Davis Index.
The weekly Index for SS 316 solids settled higher by $35/mt to $2,165/mt cfr India port on Tuesday as demand continues to improve. Offers may increase further by $20-30/mt in the next week for SS 316 if nickel and chrome prices increase or demand from Indian mills increases further, traders informed Davis Index.
Demand for stainless steel (SS) scrap is increasing as mills are expanding production and trying to reach full capacity to meet the demand from manufacturers of tubes and pipes, automobiles and panels, furniture and construction of infrastructure, among others. Import prices are rising on the back of strong demand and high freight prices, up by almost 40-45pc from normal levels of $1,200-1,300/container, noted SS traders exporting to India. Global container shortage is leading to high freight costs.
The weekly Davis Index for Zurik 85/3 Tuesday settled at $1,338/mt cfr India port, up by $37/mt on the back of healthy demand from domestic players and high cost of freight. The weekly Index for 430 solids on Tuesday settled at $583/mt cfr India port, up by $33/mt. Some offers were heard at $650/mt but most deals settled at or around index price with mills bidding around $560-570/mt cfr India port levels. Zurik and 430 is also increasing as ferrous scrap prices continued its bull-run.
The weekly Davis Index for 304 (18-8) solids for Taiwan settled at $1,380/mt cfr Taiwan port, up by $18/mt while the weekly index for 316 solids settled at $2,018/mt cfr Taiwan port, up by $18/mt. Taiwan mills are bidding at lower levels for 304 on the back of slightly lower LME nickel which has kept prices in check while demand remains firm. Some mills have enough inventories to last them a few weeks while hopes of a decline in prices amid holiday season looms. However, these are only speculations, contested traders supplying to Taiwan. The official three-month LME nickel contract on Monday settled at $16,951/mt, down by $391/mt from the earlier week.