The Davis Index for 304 (18-8) solids settled at $1,255/mt cfr India port up by $53/mt on Tuesday from the prior week driven by a rise in LME nickel gains over the same period. The Davis Index for 316 solids on Tuesday settled at $1,881/mt up by $32/mt from the week prior. The official three-month LME nickel rose by $832/mt and settled at $15,442/mt on Aug 28 from the preceding week.

 

Domestic demand for scrap from mills is supporting import prices. Offers rose amid healthy orders. Stainless steel scrap of 300 series, which has higher nickel content rose in tandem with LME nickel.

 

Several mills have ramped up production to meet demand from infrastructure and household good manufacturers but prices of scrap were deemed too high for SS 304 and 316 solids. Prices of 316 have crossed $1,880/mt cfr India port and are hovering around its eight-month from previous high of $1,873/mt cfr India port in January. Similarly, prices of 304 are charting new highs in 2020 too at around $1,300/mt while the previous high was about $1,233/mt in January. This marks an improvement in market momentum for SS scrap and for finished products.

 

In Taiwan too import prices Tuesday rose on the back of LME nickel. The Davis Index for 304 (18-8) solids imports rose by $55/mt to settle at $1,260/mt cfr Taiwan port on Tuesday from the earlier week. The index for 316 solids rose by $50/mt from the prior week to $1,870/mt cfr Taiwan port. Prices of 316 did not rise as high as 304 because of the fall in molybdenum average prices. The official three-month LME molybdenum slipped by 1pc on Aug 28 to $7.7/lb from the prior week.

 

The Davis Index for Zurik 85/3 on Tuesday rose by $43/mt to $1,093/mt cfr India port from the prior week as demand from end-users rose, said Mumbai-based importers. Large mills in India are refilling their inventory as prices of scrap are expected to rise further in the coming weeks. The Davis Index for 430 solids remained more or less flat and settled at $440/mt up by $1/mt from the prior week. Demand for 430 is lower compared to other stainless-steel scraps because end-users have enough material to last them for another month. However, they are placing bids of $410-420/mt for South Korean and Vietnamese-origin scrap but very few transactions occurred. 

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