Indian 304 grade stainless steel scrap prices edged up to INR 135,000/t ($1,688/t) ex-Delhi as compared to INR 133,000 ($1676/t) last week, as per SteelMint data. The price of 304 grade HRC ex-Mumbai remained stable at INR 234,000/t.
Market highlights
At the start of the week, Indian mills’ offers in the domestic stainless steel scrap market improved slightly. According to sources, scrap supply in the domestic market has improved, but demand remained strong.
Meanwhile, despite the drop in nickel prices, finished stainless steel prices in India remained stable. According to market participants, a fire at South Korea’s largest producer, POSCO, will reduce the country’s imports. Furthermore, the market anticipates that China will face an import duty of approximately 16%. Domestic finished prices will be supported by both these scenarios.
LME nickel prices are currently hovering at around $21,500/t, a slight improvement from last week’s level.
Ferro chrome prices under pressure
According to SteelMint’s assessment on 1 September, ferro chrome prices were hovering around INR 94,000/t exw-Jajpur, under pressure following the sharp reduction in Chinese tender prices as buyers resisted purchasing. However, due to selling pressure and slow export transactions, some producers sold material at lower prices. Meanwhile, buyers were negotiating at lower prices, which kept prices under pressure.
Outlook
Stainless steel demand improved at the start of this week. Higher European energy prices, as well as speculation about a Chinese import duty, are supporting positive sentiments among market participants.
Leave a Reply