SteelMint estimates that Indian 304 grade stainless steel scrap prices dropped to INR 122,000/t ($1476/t) ex-Delhi today, down from INR 125,000/t ($1,519/t) on 4 October, 2022. The price of 304 grade HRC ex-Mumbai is stable at INR 245,000/t ($2,965/t). Stainless steel scrap prices fell as a result of LME nickel prices and lower demand from production mills.
Market highlights
The market was mostly quiet, due to absence of major producers. Scrap price offers from Indian mills in the domestic stainless steel scrap market remained low. Although, as per market sources global price offers are improved from previous week’s levels.
Finished stainless steel prices in India are stable due to deficient supply from overseas sources and reduced stock in domestic warehouses. Lower Chinese arrival and POSCO shutdown are cited as major hindrances for outside supply.
LME nickel 3-month prices are hovering at around $22,000/t stable w-o-w.
Ferro chrome trend
According to SteelMint assessment on 6 October, ferro chrome producers were offering HC60% material at around INR 96,000-97,000/t exw Odisha. Vedanta subsidiary FACOR held an auction for ferro chrome on 10 October 2022. The H1 price for the 10-150 mm lot was INR 99,400/t, up 5% from the base price. Meanwhile, the smaller lot of 10-150 mm fetched an H1 price of INR 99,300/t ex-Jajpur, up 4% from the base price. The auction received active response as the market is expecting prices to rise after China’s National holidays.
Outlook
The finish stainless steel demand is moderate and is expected to surge after the upcoming Diwali festivity. Although, the scrap market has witnessed lower participation from major mills due to stocking of inventory, market participants are watchful amid global recession fears and demand volatility.
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