India: Stainless steel scrap prices may rise following higher import offers from Europe

Indian domestic stainless steel prices remained stable this week. Domestic 304 grade stainless steel scrap prices ex-Delhi were assessed at INR 132,000/t ($1,616/t).

As fuel prices have come down now, European stainless steel factories have begun purchasing scrap from local yards. As a result of this, scrap suppliers there have raised export offers to India. This is likely to push up domestic scrap offers in the country.

“There are no export offers to India from the scrap yards at present. Even if we try, the landing prices for 304 scrap and 316 scrap at Indian ports will be more than $1,700/t and $3,100/t, respectively.” a European merchant told SteelMint.

Indian consumers, however, are not ready to import at these levels as domestic prices are more viable. “There is sufficient availability of scrap in the Indian market and prices of 304 scrap are in the range of $1,550-1,580/t, lower than import offers,” a source said.

The price of 316 scrap is still rising due to an increase in global molybdenum prices. Meanwhile, domestic ferro molybdenum (FeMo 60%) prices edged up w-o-w to INR 3,900,000/t ($41,329/t).

Finished market overview

Domestic stainless steel HRC 304 grade prices ex-Mumbai stand at INR 240,000/t ($2,938/t). Sentiment was largely neutral in the end product segment. However, inquiries from the consumer goods and railway categories have improved.

Nickel prices on the London Metal Exchange (LME) increased around 3.6% compared to last week. LME’s three-month nickel prices are currently hovering around $28,848/t.

Ferro chrome prices rise

SteelMint assessed ferro chrome offers at INR 110,000–111,000/t exw–Jajpur on 19 January. However, some producers reached agreements at about INR 108,000/t exw before Vedanta’s auctions.

Meanwhile, global ferro chrome prices have increased on expected shortage in the near-term due to production cuts amid power crisis in major exporting countries – South Africa and Zimbabwe. Also, prices were driven by the increase in chrome ore prices.

Outlook

Demand for stainless steel in the domestic market remains low. Market participants anticipate a recovery in the upcoming weeks following the Chinese Lunar New Year holidays.