BigMint’s assessment reveals that stainless steel prices in both the global and domestic markets remained mostly stable throughout this week despite a slight decline in LME nickel prices.
Prices of 304 HRC stood at INR 174,000/t ex-Mumbai and domestic 304-grade scrap prices stood firm at INR 119,000/t ex-works Delhi.
A source said, “The stainless steel market is currently in a volatile state due to fluctuating prices of nickel on LME. Buyer interest is discernably low, with many adopting a cautious wait-and-see approach. “
The stability in finished product prices may be contrasted with the marginal drop in nickel prices on the LME, down $590/t w-o-w. Nickel prices for 3-month delivery on LME saw a 3.2% decrease, reaching $17,970/t. Notably, nickel stocks in LME warehouses are at 74,664 t.
Scrap market
In the domestic scrap market prices of 304 scrap remained at INR 119,000/t ex-Delhi NCR, cash payment basis. Sources inform that major mills are buying 304 scrap at around INR 119,000-121,000/t DAP with 45 days’ credit basis.
This week, imported offers remained firm with suppliers heard quoting prices for 304-grade scrap at $1,380-1,400/t. Meanwhile, prices for 316-grade scrap are now at $2,550/t CFR Mundra. However, demand and purchasing interest have remained relatively subdued in the market. Meanwhile, offers from nearshore for 430-grade are priced between $650 and $670/t.
A source informed BigMint that only bigger mill-based buyers are currently procuring scrap from the domestic market.
Finished segment
In the finished steel market, prices remained at stable levels. As per BigMint’s assessment, 304 HRC is priced at INR 174,000/t, while 316 HRC stands at INR 305,500/t.
A trade source said, “Expectations are emerging that the industry will gain momentum following the Indian general elections, while currency flow in the market remains constrained.”
Meanwhile, in the longs segment price indications for 304 black round bars were heard at INR 165,000/t and 316 black round bar offers were at INR 275,000/t, exw-Ghaziabad.
Another source said, “This week there was no major fluctuation in the prices of finished material as most of the market participants were absent in the market due to the ongoing festive season.”
China market overview
During the week, China’s domestic stainless steel market experienced a minor increase. Prices of 304 grade CRC reached RMB 14,600/t ($2,016/t), marking a drop of RMB 300/t ($41/t), ex-works in China. FOB prices of 304 grade CRC stood at $2,081/t, up $73/t.
As per sources, Chinese nickel pig iron (NPI) producers were heard facing challenges due to low capacity utilization, attributed to declining stainless steel feedstock prices and increasing output from Indonesia.
Global happenings
US and UK sanctions targeting Russian nickel aim to disrupt export revenue, fuelling market uncertainty. With Russia accounting for 6% of global nickel supply, participants anticipate heightened volatility and supply disruptions. Additionally, LME has implemented daily price limits, with nickel’s limit set at 15%.
Raw materials scenario
Ferro molybdenum: Ferro molybdenum prices in India saw an uptick of INR 58,000/t ($693/t) w-o-w as compared to the previous assessment on 10 April. Molybdenum oxide prices saw a slight cost push along with finished material prices globally, which contributed to the price rise.
According to BigMint’s assessment on 17 April, Indian ferro molybdenum prices were INR 2,395,000/t ($28,623/t) exw-Nagpur on a 60% pro rata basis.
Ferro chrome: Indian ferro-chrome prices (HC, FeCr60%) stood at INR 108,300/t exw-Jajpur. Prices witnessed a marginal decline of INR 700/t compared to the previous week, reflecting volatile market dynamics.
Recent deals
50 t of South America origin SS 430 scrap was heard sold at $660/t, CFR Nhava Sheva.
200 t of South Korea origin SS 304 scrap was heard traded at $1,400/t, CFR Mundra.
Around 100 t of of zurik scrap originating from US was traded at $1,270/t, CFR Mundra.
Outlook
Stainless steel prices are expected to remain rangebound in the coming week due to market uncertainty stemming from the US and UK bans on Russian metals, alongside potential impact of fluctuations in nickel LME prices.