OfBusiness SS Scrap Dailies | 3rd August 2023

Price

• Today, the import offers for bundled Steel Scrap remained unchanged at $409-412/ton CFR India basis.
• The Scrap rate for SS 304 stands unchanged at Rs. 125/kg, while the rate for 201 J5/J8 mixed Scrap is also unchanged at Rs. 70/kg.
• Rimjhim Ispat has maintained its 304 Scrap selling rate at Rs. 127/kg.
• Jindal is currently purchasing Scrap at the following prices:
  • 304: Rs. 1,34,364/ton
  • 321: Rs. 1,46,430/ton
  • 301: Rs. 1,16,598/ton
  • 316L: Rs. 2,37,889/ton
  • J5 Patta: Rs. 73,700/ton
  • J8 Patta: Rs. 71,700/ton

Demand and Supply

• There is a shortage of 316L Scrap and bundled 304 Scrap, while 400 series Scrap is abundant in supply.
• Some short supplies are also observed in the 200 series Scrap.

News

• In June, South Korea’s Scrap imports reached around 441,300 tons, increasing by 32% compared to the previous month and by 12.2% from the same month a year ago, marking a new high since May 2022. This surge in scrap imports was driven by a stronger national and real estate economy, which stimulated market sentiment and led to higher procurement of Scrap by local Steelmakers. Imports from Japan accounted for 71% of the total volume in June, amounting to approximately 315,100 tons.
• On 20th July 2023, the US Stainless Steel Scrap prices changed after 2 weeks but remained unchanged over the weekend, with rates of 0.20 USD/LB for 201, 0.33 USD/LB for 304 Prepared Scrap, 0.07 USD/LB for 400 series, and 0.55 USD/LB for 316L Scrap. The prices for 309 Scrap and 310 Scraps were 0.75 USD/LB and 0.95 USD/LB, respectively. 304 Unprepared Scrap was priced at 0.27 USD/LB.

OFB’s Opinion

• It is anticipated that the supply of Stainless Steel 304 (bundled) and 316L Scrap will remain slightly limited in the near future. Dealers may find profitable stocking opportunities if they can purchase rates closer to Rs. 230/kg and acquire A-grade 316L Scrap material.
• As for 304 and 202 Scrap, bundled Scrap is currently yielding slight profits compared to cut utensils Scrap.