Stainless steel 304 HRC prices stood at INR 177,000/t ex-Mumbai and domestic 304-grade scrap prices stood firm at INR 119,000/t ex-works Delhi, BigMint’s assessment reveals. Scrap prices in both the global and domestic markets remained mostly stable throughout this week. At the same time, finished products prices for 304 and 316 grades in the domestic market experienced a minor increase due to the rise in LME nickel prices and because of hike in prices announced by a major producer.
The slight rise in finished product prices is attributed to the rise in nickel prices on the LME, up $1,355/t w-o-w. Nickel prices for 3-month delivery on LME saw a 7.5% increase, reaching $19,325/t. Notably, nickel stocks in LME warehouses are at 76,878 t.
A source said, ” The stainless steel market is facing volatility due to fluctuating nickel prices on the LME. Buyer interest is notably low, with many adopting a cautious wait-and-see approach.”
LME nickel prices have soared above $19,000/t, exerting an impact on Asia’s stainless steel market. Additionally, China’s SHFE prices have also exceeded RMB 140,000/t. However, sources indicate that the recent price hike seems to be a temporary affair.
The surge in LME nickel prices was fuelled by rumors of significant purchases by the Chinese government and the potential state stockpiling of nickel. These rumors raised concerns about scarcity, heightening market speculation regarding the future availability of this essential raw material.
Scrap market
In the domestic scrap market, prices for 304 scrap have held steady at INR 119,000/t ex-Delhi NCR, based on cash payment terms. According to sources, major mills are purchasing 304 scrap at approximately INR 119,000-121,000/t DAP, with a credit period of 45 days.
A source informed BigMint, ” Only larger mill-based buyers are currently active in procuring scrap in the domestic market.”
This week, imported offers remained firm, with suppliers quoting prices for 304-grade scrap at $1,390-1,410/t. Meanwhile, prices for 316-grade scrap were reported at $2,550/t CFR Mundra. Despite these price levels, demand and purchasing interest in the market have remained relatively low. Additionally, offers for 430-grade scrap from nearshore sources are priced between $650/t and $670/t.
Offers for SS 304 scrap of Middle East-origin stood at $1,420-$1,430/t, while 316 stood at $2,580-2,590/t CFR Mundra.
A trade source stated, ” The market sentiment appears positive, but there is a lack of confidence among buyers due to volatile trends. Shipments of material from Europe are taking approximately 1-1.5 months to be delivered prompting buyers to depend more on domestic material.”
Finished segment
In the finished market, prices saw a slight increase by INR 3,000/t. As per BigMint’s assessment, 304 HRC is priced at INR 177,000/t, while 316 HRC stands at INR 308,000/t.
Meanwhile, in the longs segment price indications for 304 black round bars were heard at INR 165,000-167,000/t, exw-Ghaziabad.
Meanwhile, offers for SS 304 HRC from China are currently at $1,860-70/t CFR West Coast, India.
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 ($2,014/t) ex-works. FOB prices of 304 grade CRC stood at $2,095/t, up $14/t.
In March, China’s stainless steel imports reached 152,700 t, down 31.4% from the previous month but up 23.8% from last year. Meanwhile, exports in March stood at 386,300 t, increasing by 49.6% m-o-m and 10.6% y-o-y.
Raw materials scenario
Ferro molybdenum: Indian ferro molybdenum prices remained stable w-o-w, compared to the previous assessment on 17 April,. Prices remained firm since supply and demand were at normal levels and there were no significant shifts in the global market.
Indian ferro molybdenum prices were at INR 2,395,000/t ($28,751/t) exw-Nagpur on a 60% pro rata basis, as per BigMint’s assessment on 24 April.
Ferro chrome: Indian ferro-chrome prices (HC, FeCr60%) stood at INR 108,600/t exw-Jajpur. Prices witnessed a marginal rise of INR 300/t w-o-w.
Recent deals
Around 150 t of Mexico origin SS 430 scrap was sold at $630/t, CFR Nhava Sheva.
Around 100 t of SS 316 turnings from South Korea was heard traded at $2,350/t, CFR Mundra.
Recently, 50 t of Japan-origin SS zurick was traded at $1,425/t, CFR Nhava Sheva.
Outlook
Stainless steel prices are expected to remain firm in the coming week due to market uncertainty stemming from ongoing geopolitical tensions, alongside potential impact of fluctuations in LME nickel prices.