India: Imported SS scrap prices largely stable w-o-w amid sluggish buying activity

• Stainless steel scrap stable amid low trading volumes
• Demand may rise, support possible price rebound

India’s imported stainless steel (SS) scrap remained largely stable w-o-w amid a drop in LME nickel prices and minimal trading activities.

As per BigMint’s assessment, domestic 304-grade SS scrap stood at INR 116,000/t ex-Delhi, stable w-o-w, while the imported variant of the same, originating from nearshore regions, was priced at $1,305/t CFR Mundra.

LME nickel prices up

At the time of reporting, three-month LME nickel prices stood at $15,725/t, reflecting a 4% drop from last week’s $16,425/t. Meanwhile, nickel stocks in LME-registered warehouses stood at 200,250 t, largely stable against the previous week’s 201,300 t.

BigMint’s daily assessments

• Nearshore-origin SS 316 scrap (loose) was at $2,500/t, up $5/t w-o-w.
• Nearshore-origin SS 201 scrap (loose) was at $690/t, up $5/t w-o-w.
• Nearshore-origin SS 430 scrap (loose) was at $590/t, up $5/t w-o-w.
• SS 316 scrap, ex-Delhi, stood at INR 215,000/t, steady w-o-w.

Market scenario

According to market participants, the movement of finished steel has been slow, primarily due to the financial year-end.

One source noted, “The stainless steel market has slowed due to Ramadan and the financial year-end, causing a temporary pause in trading. Market participants are waiting for normal activity to resume after the holidays.” The source added: “We also heard that payments from buyers are still pending, and mills have not yet fully closed their books for FY’25. This has resulted in liquidity pressures, further contributing to the market’s downturn.”

In the imported scrap market, offers remained on the higher side, with SS 304 scrap, originating from nearshore regions, being quoted at $1,315-1,320/t, while bids were assessed at $1,290-1,300/t. Offers for SS 316 were heard at $2,520-2,530/t and bids at $2,480-2,490/t CFR Mundra.

A few deals for SS 304 scrap from the Middle East region were heard concluded at $1,300/t, CFR West Coast, India.

Outlook

Market expectations suggest a rise in demand for finished stainless steel products in April and May, driven by project-based activities. This could lead to a potential price rebound in scrap in the new financial year.