Stainless steel scrap prices slipped in the week ending Tuesday driven by a sharp fall in LME nickel levels. SS 304 and 316 fell relatively more than 430 and Zurik on Tuesday. The official three-month LME nickel on Monday settled at $17,346/mt down by 5pc or by $961/mt from the week prior driving 304 and 316 scrap prices down.
The weekly Davis Index for 304 (18-8) solids on Tuesday settled at $1,810/mt cfr India port, down by $23/mt with a drop in LME. Market demand has slightly improved perhaps on the back of eased lockdowns in the country. Mills would try to recover losses made in the low production days and focus on ramping up production to meet the expected pent-up demand. Offers for 304 solids was heard around $1,790-1,840/mt cfr India port. US origin material was at the lower end of the range while EU origin offers were higher.
The weekly Davis Index for 316 solids on Tuesday fell by $44/mt to $2,406/mt cfr India port hit by slightly low demand for the material and consistent low bids from importers. Offers also slipped in line with LME which finally resulted in the index dipping by almost 1.8pc from a week prior. Offers for the grade were heard between $2,390-2,450 levels with EU origin scrap quoted on the higher end and US on the lower side. Some mills quoted cfr India port deals at $2,390/mt levels on Tuesday.
The Davis Index for Zurik 85/3 on Tuesday settled at $1,483/mt cfr India port, slightly down by $2/mt. Most offers remained unchanged compared to the prior week driven by shortage of material. Lower bids were heard on Tuesday as nickel and copper, both contracts feel on the London exchange over the week. Material shortage kept prices firm, however.
The weekly Davis Index for 430 solids on Tuesday fell by just $3/mt to $745/mt cfr India port driven by lower bids, however offers remained firm amid weekly strengthened ferrous scrap prices. Offers were heard around $800/mt cfr India port levels. Some bids were heard around $750/mt levels from mills, however, sellers said that market has reached around $780-800 levels and justified the prices as ferrous scrap prices are still holding strong.
The Davis Index for 304 (18-8) solids for Tawian settled at $1,532/mt cfr Taiwan port, slightly down by $3/mt and the index for 316 solids settled at $2,215/mt cfr Taiwan port, down by $5/mt from a week ago. Demand from Taiwanese mills remained firm and most bids occurred at prices unchanged since last week despite a drop in nickel prices.