India: Imported SS scrap prices dip w-o-w on sliding LME nickel

India’s imported stainless steel (SS) scrap prices saw a declining trend w-o-w with minimal trading activities, while domestic prices increased slightly as compared to last week. In the domestic scrap segment, prices remained largely stable, while in the imported segment the prices dropped by $5/t. The overall market remained slow amid ahead of the financial year closing.

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 $1,275/t CFR Mundra, down $5/t w-o-w.

LME nickel prices dip

At the time of reporting, three-month LME nickel prices stood at $16,170/t, slightly down from last week’s $16,400/t. Meanwhile, nickel stocks in LME-registered warehouses stood at 200,436 t, largely stable from the previous week’s 199,686 t.

BigMint’s daily assessments

• Nearshore-origin SS 316 scrap (loose) was at $2,475/t, down $5/t w-o-w.
• Nearshore-origin SS 201 scrap (loose) was at $685/t, down $5/t w-o-w.
• Nearshore-origin SS 430 scrap (loose) was at $585/t, down $5/t w-o-w.
• SS 316 scrap, ex-Delhi, stood at INR 214,500/t, up INR 500/t w-o-w.

Market scenario

Stainless steel scrap prices in the domestic market remained range-bound w-o-w amid moderate market activities and sales of small parcels.

A trade source informed, “Despite fluctuations in prices, transaction levels have remained subdued due to weak finished demand and financial year closing, with no significant improvement expected in the near term. However, as is typically the case, mid-April may bring a boost in demand, potentially leading to a more positive market outlook.”

Moreover, major domestic mills scrap buying prices stood at INR 117,500/t for SS 304 and SS 316 at INR 215,500/t, both with a 45-day payment term.

In the imported scrap market, the offer levels continued to remain on the higher side, with SS 304 scrap originating from nearshore regions being offered at $1,300-1,310/t, while the bids were assessed at $1,270-1,280/t. Offers for SS 316 were heard at $2,500-2,520/t and bids, at $2,470-2,480/t CFR Mundra.

Recently, deals for 304 scrap from Indonesia were reported at $1,300/CIF Nhava Sheva, and 316 scrap traded at $2,500/t. Additionally, 430 and 201 scrap were heard at $675/t and $720/t, respectively.

Outlook

In the short term, market activity is expected to remain slow until finished demand sees an improvement. The market anticipates some positivity from mid-April.