BigMint’s assessment revealed that prices of imported 304 scrap have seen a correction by $10/tonne (t) and are currently hovering at around $1,350/t. In the finish segment, prices have remained largely stable with slight gains compared to the previous week.
BigMint’s assessment for 304 HRC stood at INR 175,000/t, and the price of domestic 304-grade scrap stood firm at INR 114,000/t ex-works in Delhi.
A source mentioned, ” Stainless steel market is currently at a volatile state due to the fluctuating price of nickel on LME. Although there has been a slight increase in market prices, buyer interest is notably low, with many adopting a cautious wait-and-see approach. “
Slight rise in prices of the finish segment were mainly linked to a marginal increase in nickel prices on the LME, gaining by $460/t w-o-w. Nickel prices for 3-month delivery on the LME saw a 2.8% increase, reaching $17,045/t. Notably, nickel stocks in LME warehouses stand at 77,772 t.
Scrap market insights
In the domestic scrap market, the price of 304 scrap ranges from INR 113,000 to INR 115,000/t, while 316-grade scrap is approximately INR 206,000/t ex-Delhi, showing minimal fluctuations.
This week, there has been a slight decline in offers for imported scrap, with prices decreasing by $10/t. Suppliers are currently quoting prices for 304-grade scrap at $1,340-1,360/t. Likewise, prices for 316-grade scrap have also experienced a minor decrease of $10/t, now standing at $2,540/t, CFR Mundra. However, despite these adjustments, demand and purchasing interest have remained relatively subdued within the market.
A source informed BigMint that majorly only mill-based buyers are currently procuring scrap from the domestic market.
Meanwhile, offers from nearshore for 430-grade are priced between $620 and $630/t, while 201-grade stand at $740-760/t, CFR Mundra. Additionally, zurik scrap is being offered at $1,280-1,290/t, CFR Mundra.
Finished segment
In the finish market, prices remained at stable levels. As per BigMint’s assessment, 304 HRC is priced at INR 175,000/t, while 316 HRC stands at INR 305,000/t.
Meanwhile, market participants anticipate that prices may be adjusted downwards by mills due to weak demand.
A trader mentioned, “Despite the commencement of a new fiscal year, the finished market seems to be moving at a slower pace. The market might gain some momentum post-elections and they anticipate potential new infrastructure development initiatives by the government.”
China market overview
During the week, China’s domestic stainless steel market experienced a decrease. Prices of 304 grade CRC reached RMB 14,400/t ($1,990/t), marking a drop of RMB 300/t ($41/t), ex-works in China. FOB prices of 304 grade CRC stood at $2,051/t, down $27/t.
Additionally, the FOB prices of nickel pig iron (NPI) originating from Indonesia were at $111/t to Chinese ports.
Raw materials scenario
Ferro molybdenum: Ferro molybdenum prices in India remained mostly unchanged w-o-w, experiencing a slight decrease of INR 3,000/t ($36/t) compared to the previous assessment on 27 March. Despite the approaching holidays last week, prices stayed stable amid reduced market activities.
As per BigMint’s assessment on 3 April, Indian ferro molybdenum prices stood at INR 2,351,000/t ($28,178/t) exw-Nagpur on a 60% pro-rata basis.
Ferro chrome: Indian ferro-chrome prices (HCFeCr60%) stood at INR 112,200/t exw-Jajpur. Prices witnessed a marginal decline of INR 1,000/t compared to the previous week, reflecting volatile market dynamics.
Recent deals
Around 200 t of Europe-origin SS 304 scrap was sold at $1,365/t, CFR Mundra.
Recently, 100 t of Japan-origin zurik (98-99%) was heard concluded at $1,285/t, CFR Mundra.
Around 100 t of South America-origin SS 201 scrap was concluded at $760/t, CFR Mundra.
A deal for 50 t of SS 304 plate cutting (Ni 8.5%) was sold at INR 121,500/t, ex-Mumbai.
Outlook
Expectations are high for a price increase in the near future, driven by the start of the new financial year. However, uncertainties loom regarding the upcoming elections, as well as potential impacts from the fluctuation of nickel LME prices on final pricing.