- Uncertainty over US tariffs on scrap supply
- Chinese ferronickel prices edge up
This week, India’s domestic and imported stainless steel (SS) scrap prices remained stable amid minor fluctuations. Overall market activity was low to moderate, with buying activity driven by specific needs. Market participants also expressed uncertainty regarding the impact of US tariffs on SS scrap supply.
As per BigMint’s assessment, domestic 304-grade SS scrap stood at INR 116,000/t ex-Delhi, while the imported variant of the same, originating from nearshore regions, was priced at $1,260/t CFR Mundra down by $10/t.
LME nickel prices dip w-o-w
At the time of reporting, three-month LME nickel prices stood at $15,505/t, range-bound from last week’s $15,535/t. Meanwhile, nickel stocks in LME-registered warehouses stood at 192,180 t, up 6% from the previous week’s 180,900 t.
BigMint’s daily assessments
- Nearshore-origin SS 316 scrap (loose) was at $2,445/t, down by $15/t w-o-w.
- Nearshore-origin SS 201 scrap (loose) was at $680/t, steady w-o-w.
- Nearshore-origin SS 430 scrap (loose) was at $580/t, steady w-o-w.
- SS 316 scrap, ex-Delhi stood at INR 215,000/t, down INR 2,000/t w-o-w.
Market scenario
A market participant mentioned, “We haven’t booked any imported scrap lately, and domestic supplies have also halted. Imported offers are on the higher side, so we’re currently in a wait-and-watch stance. We have sufficient inventory on hand for now.”
“With the LME increasing, suppliers offers are on the higher side. However, we’re not very inclined to book material at these elevated prices,” he added.
Major mills domestic scrap buying prices for SS 304 were INR 119,500/t, and for SS 316, they stood at INR 218,000/t, with a 45-day payment term.
Additionally, SS 304 domestic scrap prices in Chennai were heard at INR 113,000-114,000/t, while SS 316 prices were heard at INR 210,000-212,000/t. SS utensils were quoted at INR 57,000-58,000/t ex-Chennai.
Other updates
US stainless steel scrap prices rise slightly: US stainless steel scrap prices witnessed a slight uptick, with 304 solids and clips rising alongside 304 turnings. Minor price hikes were observed in 409 bundles and solids. Despite weak export demand and adverse weather limiting overall activity, the domestic market remained stable. While demand remained steady, no significant price declines were observed.
China market growth driven by rising ferronickel prices: Despite the impact of Trump’s tariff adjustments on the stainless steel market this week, buyers have adopted a wait-and-see approach, and there has been no significant market increase overall.
However, China’s ferronickel prices have risen due to the positive effects of steel production cuts and a rebound in futures prices, helping to halt the decline in the stainless steel market.
Outlook
Stainless steel scrap prices are expected to remain stable in the short term. However, a slight increase in buying activity is expected, driven by the projected rise in demand for finished stainless steel products in the coming months.
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