Major stainless-steel scrap prices were flat in the week ending Oct 6 on low demand from recycling mills in India.
The Davis Index for ss 304 (18-8) solids settled at $1,260/mt cfr India port, flat from the week prior. The weekly index for 316 solids settled slightly higher by $9/mt to $1,847/mt cfr India port on Tuesday from a week ago. Price of 316 increased on the back of higher molybdenum prices. The official three-month LME molybdenum increased by 2pc in a week supporting 316 prices.
Traders in India rued of very low demand from mills. Demand has suddenly subsided, deals for ss 304 is however stable but for 316 solids, is extremely low because prices are too high for mills to procure which is resulting in mills adopting a wait-and-watch strategy.
Market momentum has slowed down even for Zurik 85/3 and ss 430 solids. The Davis Index for Zurik settled flat at $1,050/mt cfr India port on Tuesday from the prior week amid fewer trades. The Davis Index for 430 solids dipped slightly by $5/mt to $428/mt on Tuesday from the week prior.
COVID-19 has resulted in a torrid situation and low infrastructure and construction activities has impacted demand for stainless steel. Recycling mills have cut down demand for scrap amid high inventory in August and September. Demand from downstream consumers is also low owing to lower disposable income and negative sentiments in the market. Demand for medical appliances is strong said traders while other sectors are lagging.
The Davis Index for ss 304 solids in Taiwan settled at $1,195/mt cfr Taiwan port down on Tuesday flat from the week prior while the index for 316 solids settled at $1,805/mt cfr Taiwan port down by $10/mt on Tuesday from the preceding week. Prices in Taiwan trended flat to down in the week owing to a fall in Nickel LME contract. The official three-month LME contract settled at $14,405/mt on Monday, down by $55/mt from the week prior pulling prices lower with it.