India’s stainless steel (SS) scrap import prices trended mostly flat to up across major grades including imports to Taiwan, compared to the prior week, while SS 430 solids gained the most amid robust demand from Indian mills.
The weekly Davis Index for 430 solids Tuesday settled at $525/mt cfr India port, up by $37/mt from the week prior on healthy trades amid improved demand from mills. Prices are expected to move up sharply in the coming days as offers are already being heard around $550-600/mt cfr India port. Mills are, however, hesitant to buy at these high levels as they are looking for more competitive prices, said market participants.
The weekly Davis Index for SS 304 (18-8) solids settled at $1,404/mt cfr India port Tuesday, marginally up by $1/mt, while the index for SS 316 solids settled flat at $1,967/mt cfr India port. Prices are rising on the back of high freight costs, said traders who are feeling the heat of this uptick in prices. Shortage of containers has pushed freight costs higher at $1,800-1,830 per container which is normally around $1,200-1,300 per container. The weekly Davis Index for Zurik 85/3 settled higher by $15/mt at $1,181/mt cfr India port on Tuesday with traders reporting healthy demand.
SS scrap prices are increasing at an unprecedented level owing to high demand for SS finished products and rise in LME nickel prices resulting in higher offers globally. The official three-month LME nickel contract settled at $16,388/mt on Monday, down by $40/mt from the week prior. The contract gained almost 2.71pc, or $431/mt, from a month ago.
In Taiwan, the weekly Davis Index for 304 (18-8) solids settled at $1,313/mt cfr Taiwan port, up by $3/mt on Tuesday. Taiwan’s domestic demand for SS products is rising, said SS producers, who have ramped-up production to meet demand. Some mills are contemplating switching to domestic scrap as import prices are high, however, quality issues remain a major problem, shared market participants. The Davis Index for 316 solids settled at $1,905/mt cfr Taiwan port, up by $17/mt from a week ago.