In India, stainless steel prices have witnessed minor drops this week across all the grades in finished steel as well as imported scrap amid the decline in LME nickel prices. Meanwhile, domestic scrap prices maintained stability for the week.
Following the financial year 2025 (FY’25) interim Budget presentation on 23 July, 2024, the Indian market saw reduced activity. The budget waived the 2.5% Basic Customs Duty on ferro nickel (FeNi), crucial for stainless steel production and fully imported currently. This move targets lowering domestic stainless steel production costs.
India’s stainless steel (304 series) HRC prices stood at INR 176,000/t ex-Mumbai and domestic 304-grade scrap at INR 120,000/t ex-works Delhi, BigMint’s assessment revealed.
At the time of reporting, nickel prices on the LME saw a drop of $685/t w-o-w. Nickel prices for 3-month delivery on LME fell by 4% to $16,015/t, which was previously hovering at $16,700/t. Meanwhile, nickel stocks on LME stood at 102,960 t.
Scrap market
In the local market, prices for 304 scrap were assessed at INR 120,000/t ex-Delhi NCR, on cash payment terms. Sources indicated that major mills are purchasing 304 scrap at approximately INR 122,000-124,000/t delivered (DAP), with a credit period of 45 days.
A trader informed BigMint, “There’s been a noticeable uptick in domestic scrap demand due to major mills and buyers favouring local sourcing. Although imported scrap prices have fallen, domestic demand remains strong, partly due to higher import offers. This situation is exacerbated by rising freight costs from Southeast Asia and logistical issues such as port congestion and container shortages.”
A buyer informed, ” Currently, the removal of custom duties on nickel has not had a significant impact, as imported scrap prices remain high. Any potential impact may be seen in the future if imported scrap becomes more economically viable. “
This week, imported scrap prices have seen a drop by up to $20/t. BigMint’s assessment shows prices for 304-grade scrap stood at $1,410/t CFR Mundra. Meanwhile, suppliers are quoting SS 304 scrap at $1,430-$1,450/t, while buyers’ bids are slightly lower at $1,380-$1,400/t, creating a gap of $40-$50/t.
316-grade scrap is priced at $2,610/t CFR Mundra, with some suppliers offering it at $2,640-$2,660/t. However, buyers’ bids are in the range of $2,560-$2,580/t.
Additionally, SS 201 scrap is offered at $730-$750/t and SS 430 at $630-$650/t CFR Mundra. Meanwhile, offers for SS Zurik scrap originating from the US ranges from $1,300-$1,350/t levels for SS content with 90-95%.
Finished flat
In the finished flat segment, prices saw a marginal drop this week. As per BigMint’s assessment, 304 HRC prices stood at INR 175,000-INR 176,000/t, while prices of SS 316 HRC stood at INR 305,000-INR 307,000/t ex-Mumbai.
According to a source, “The slight price adjustment is due to subdued market demand and the influence of LME nickel prices on finished SS prices.”
Finished longs (AOD grade): indicative levels
In the finished longs segment, price indications for 304 black round bars were heard at INR 185,000-INR 187,000/t exw-Mumbai. Additionally, prices for SS 304 bright bars were heard at INR 210,000-INR 215,000/t exw-Mumbai.
Indicative offers of SS 316 black round bars were at INR 305,000-INR 307,000/t exw-Mumbai. Additionally, price levels for SS 316 bright bars were heard at INR 330,000-INR 333,000/t exw-Mumbai.
China market overview
During the week, China’s domestic stainless steel prices dipped w-o-w. Prices of 304 grade CRC reached RMB 14,450/t ($1,986/t) ex-works. Meanwhile, prices of 304 grade CRC stood at $2,076/t FOB.
Raw materials scenario
Ferro molybdenum: Indian ferro molybdenum prices experienced a drop of INR 91,000/t ($1,087/t) w-o-w as compared to the previous assessment on 17 July. Prices decreased because there were still few inquiries and enough inventory.
Indian ferro molybdenum prices were at INR 2,575,000/t ($30,766/t) exw-Nagpur on a 60% pro rata basis, as per BigMint’s assessment on 24 July.
Ferro chrome: Indian ferro chrome prices (HC, FeCr60%) stood at INR 107,900/t exw-Jajpur, down by INR 900/t w-o-w.
Outlook
Stainless steel prices are expected to remain range-bound or they may even witness a marginal decline driven by the downtrend in LME nickel prices as well as subdued buying interest. Nickel prices have continued to decline due to oversupply and expected to further decrease to around $15,000/t levels.
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