Indian stainless steel prices have seen a marginal uptick w-o-w owing to two reasons. One is the increase in LME nickel prices. Two, primary producer’s effected a price hike.
Additionally, a major stainless steel producer increased prices of finished coils of all grades by INR 2,000/tonne (t) amid rising raw material prices.
The uptick in stainless steel prices can also be attributed to a gain in nickel prices on the LME, which rose by $650/t w-o-w. Nickel prices for 3-month delivery on LME saw a 3.5% increase, reaching $19,245/t, at the time of reporting. Notably, nickel stocks in LME warehouses upped 1% compared to the previous week, reaching 80,814 t.
BigMint’s assessment for domestic stainless steel 304 HRC prices stood at INR 177,000/t ex-Mumbai and domestic 304-grade scrap was firm at INR 121,000/t ex-works Delhi.
Scrap market scenario
In the local scrap market, prices have seen a slight rise by INR 1,000/t amid the increase in finished prices. The offer levels for 304 scrap is ranging between INR 120,000-INR 122,000/t ex-Delhi NCR, with cash payment terms. Sources indicated that key mills are acquiring 304 scrap at around INR 122,000-INR 124,000/t DAP, with a credit period of 45 days.
Meanwhile, major mills are refraining from booking imported material and are instead focusing on domestic sources.
A trader informed BigMint, “The market is sluggish with minimal bookings observed. Larger mill-based buyers are primary and active participants in procuring scrap in the domestic market.”
This week, imported scrap prices remained steady , with BigMint’s assessment indicating prices for 304-grade scrap at $1,430- $1,440/t. Offers from South Korea were heard at $1,440-$1,460/t, CFR Mundra.
Prices of 316-grade scrap were observed to be at $2,590/t CFR Mundra. Meanwhile, suppliers were offering levels higher that $2,600-$2650/t due to limited supply of the material.
However, market demand and purchasing interest have stayed subdued. Furthermore, offers for 430-grade scrap obtained from nearby locations are available at $650-$670/t.
Finished flat ssegment
As per BigMint’s assessment, 304 HRC is priced at INR 177,000/t, while 316 HRC stood at INR 308,000/t, ex-Mumbai, moving up by INR 2,000/t.
According to a buyer source, “The prices of finished material has been fluctuating in recent days primarily influenced by fluctuating LME nickel prices. Buyers are exercising caution and opting for a wait-and-see approach to gain better clarity on existing market dynamics.”
Another source informed, “Buying interest in the market is slow majorly due to the tight cash flow attributed to the election season. We can expect transactional activities to gain momentum post-elections.”
Meanwhile, imported offers of SS 304 HRC from China are currently at $1,900-$1,920/t CFR Mundra, India. China’s offers for SS 304 HRC saw a marginal rise post-resumption of the holidays.
Finished longs’ indicative levels
In the finished long segment, price indications for 304 black round bars have been heard at INR 168,000-INR 170,000/t, exw-Delhi. Additionally, price levels for SS 304 bright bars were heard at INR 190,000-INR 192,000/t levels, ex-Delhi.
Indicative offers for SS 304 hexagon stood at INR 201,000-INR 202,000/t and SS 304 angles are at INR 195,000-INR 197,000/t, both ex-Delhi.
A manufacturer source said, “The rise in LME nickel prices and primary producer’s price hikes have still not had any major effect on the longs product segment, particularly in 304-grade. However, it is anticipated, prices might reflect the trend in the coming days.”
Meanwhile, offer levels for 316-grade black round bars were heard at INR 287,000-INR 289,000/t, ex-Delhi.
China market overview
During the week, China’s domestic stainless steel prices witnessed stability. Prices of 304 grade CRC reached RMB 14,400/t ($1,993/t) ex-works. FOB prices of 304 grade CRC stood at $2,079/t.
Since the 1 May holidays, China’s domestic stainless steel market has experienced fluctuating trends, influenced by steel mills’ positions. High global nickel prices, including LME nickel and Chinese nickel pig iron, have kept stainless steel costs fluctuating since April.
Raw materials scenario
Ferro molybdenum: Indian ferro molybdenum prices saw a slight increase of INR 7,500/t ($90/t) from the previous assessment on 8 May. Ferro molybdenum prices in India were largely stable w-o-w since there were no significant fluctuations in the market and demand was at normal levels.
As per BigMint’s assessment, ferro molybdenum prices were at INR 2,620,000/t ($31,375/t) exw-Nagpur on a 60% pro rata basis as of on 15 May.
Ferro chrome: Indian ferro-chrome prices (HC, FeCr60%) stood at INR 106,600/t exw-Jajpur. Prices witnessed a marginal drop of INR 1,100/t w-o-w.
Global updates
- POSCO Pohang SS manufacturing facility focuses on repairs from May to June
POSCO Pohang Steel Works will undergo major repairs to its stainless steel manufacturing facilities in the second quarter. Repairs include the 2nd steel mill (June 3-23), 3rd steel mill (May 13-June 2), 4th steel mill (April 22-May 26), and rationalization of the 2nd hot rolling mill (April 23-June 12). These repairs are part of their annual schedule and will not disrupt customer deliveries.
- Indonesia adds 16 strategic projects, including $39.58 billion nickel parks
Indonesia’s outgoing government added 16 strategic projects, including five nickel processing industrial parks worth $39.58 billion, which will receive state support. These parks will produce materials for EV batteries.
Recent deals
Around 50 t of SS 304 scrap was heard traded at INR 121,000/t, ex-Delhi.
A deal for 70 t of SS 304 HRC was concluded at INR 176,500, ex-Mumbai.
Around 100 t of Thailand-origin SS 430 scrap were sold at $670/t, CFR Mundra.
About 100 t off SS 316 turnings scrap from South Korea was traded at $2,425 CFR Mundra.
Outlook
Considering prevailing market conditions and fluctuating LME nickel, stainless steel prices are expected to remain relatively stable, with a minor upward trend.