Imported stainless steel scrap prices on Tuesday rose sharply with domestic markets showing signs of improvement over the week. Positive global cues pushed offers higher and bids were raised as mills ramped production with the Indian markets slowly returning to the status quo.
SS 304 and 316 solids cfr India port rose between 2-4pc while for Taiwan prices jumped up by 9-10pc supported by strong recovery and pent-up demand after weeks of almost flat prices.
The weekly Davis Index for 304 (18-8) solids on Tuesday settled 2pc higher at $1,883/mt cfr India port after it rose by $33/mt on higher offers. Improved demand from mills and traders lifted offers.
Offers for US-origin material heard around $1,930-1,940 levels. Bids were at $1,850/mt, but most deals took place between $1,870-1,900/mt cfr India port. The Davis Index for 316 solids zoomed higher by 3.7pc from a week ago. The index settled at $2,562/mt cfr India port, up by $93/mt driven by improving trades. Indian markets have begun to open as local governments have started to ease restrictions.
The weekly Davis Index for 430 solids settled at $783/mt cfr India port, up by $9/mt or 1pc higher driven by higher offers. But some lower bids continue to pressure prices. Few market participants spoke of a correction in 430 prices as bids remained firm at lower levels. The weekly Davis Index for Zurik 85/3 on Tuesday settled at $1,573/mt cfr India port, up by $70/mt from a week ago driven by mills re-entering the markets. Sellers expect demand to rise. Offers for Zurik rose on the back of tight supply in major markets.
Imported SS 304 and 316 prices moved up sharply after remaining flat in the last couple of weeks. Mills have raised their bids as Taiwanese markets are recuperating. The infrastructure sector has recovered, driving demand for construction metals, including stainless steel.
The weekly Davis Index for 304 settled at $1,705/mt cfr Taiwan port, up by $160/mt, the sharpest weekly jump recorded in a year, driven by pent-up demand. Similarly, the Davis Index for 316 solids settled at $2,460/mt cfr Taiwan port, up by $222/mt. COVID-19 cases in the country have started stabilizing and the government might ease lockdown restrictions in the coming days, announced Taiwan’s Cabinet recently.
The three-month LME nickel contract on Monday settled at $18,370/mt, up by $1,052/mt from the lows of mid-June, supporting scrap prices.