India’s imported stainless steel scrap prices increased by 1-2pc this week on a 2.3pc rise in the official three-month LME nickel contract, causing concern for cash-strapped mills.
The weekly Davis Index for 304 stainless steel scrap solids Tuesday rose by $18/mt from a week ago to settle at $1,093/mt cfr India port. The weekly index for 316 stainless steel scrap solids settled at $1,730/mt cfr India port, up by $21/mt. The price of stainless steel scrap increased in line with gains made by LME nickel futures contract. Mills, however, moved sideways to wait for nickel price to stabilise as they are already cash-strapped and cannot afford to book stainless steel scrap at higher prices.
In Taiwan, imported stainless steel scrap prices surged during the week. The weekly index for 304 and 316 stainless steel scrap solids settled at $1,060/mt cfr Taiwan port and $1,635/mt cfr Taiwan port, up by $40/mt and $60/mt, respectively.
There are still not many buyers for Zurik 85/3 in India, as the country continued to struggle with labour shortages, keeping the index unchanged at $875/mt cfr India port from a week ago.
The official three-month LME nickel contract settled at $12,485/mt, Monday, up by $286/mt from a week ago. LME nickel has gained 10pc since it hit its lowest in 2020, at $11,482/mt in late March.