Imported stainless steel scrap prices skyrocketed on Tuesday on elevated offers amid LME nickel contract gaining almost 8pc in a week to $19,722/mt on Monday.
The weekly Davis Index for 304 (18-8) solids settled at $1,744/mt cfr India port, up by $178/mt on higher offers. Trades were low because of the high offers with mills in India hesitating to buy at the current levels. Offers from Japan rose to $1,800/mt while EU-origin was heard around $1,740-1,750/mt. The weekly Davis Index for 316 solids settled at $2,396/mt cfr India port, up by $206/mt. Stainless steel mills reported firm domestic demand for 316 solids.
The weekly Davis Index for Zurik 85/3 on Tuesday reached $1,365/mt, up $114/mt. Prices are up on higher offers from EU-origins. Also, LME copper contract rose 8pc or by $642/mt on Monday from a week ago driving Zurik 85/3 prices higher. The weekly Davis Index for 430 solids settled at $598/mt cfr India port, up by $55/mt with offers reaching $650/mt and with most mills and buyers bidding at around $550/mt cfr India port.
Mills are cautiously procuring material amid high offers which are likely to squeeze their margins, as finished stainless steel products’ prices have not been raised in line with the high scrap prices. The problem of container shortage persists which is also elevating prices. On Tuesday, trades were low because of high prices.
Prices of imported stainless steel scrap to Taiwan also rose in the week ending Tuesday. The weekly Davis Index for 304 (18-8) solids for Taiwan rose to $1,550/mt cfr Taiwan port, up by $80/mt. Prices are up amid firm demand from Taiwan mills. The weekly Davis Index for 316 solids was up by $80/mt to $2,250/mt cfr Taiwan port.
Tuesday’s weekly price difference was the highest weekly jump in stainless steel scrap prices recorded in a year. Nickel prices have jumped almost 58pc in a week, up by $7,257/mt from Feb 2020. The official contact is trading at its highest levels in a year.