India: Imported, domestic stainless steel scrap prices tumble w-o-w as LME nickel tags drops

• Bid-offer disparities pressure trades for imported scrap
• Major mills pause new scrap bookings, cut purchase prices

India’s imported and domestic stainless steel (SS) scrap prices dropped by up to $50/t and INR 4,000/t w-o-w, respectively, as London Metal Exchange (LME) nickel tags plunged to a nearly five-year low, hovering at around $14,000/t earlier in the week, due to the impact of the US reciprocal tariffs. However, LME levels recovered towards the mid-week in response to the 90-day suspension of the reciprocal tariffs.

Meanwhile, overall buying activity remained low to moderate for the week.

As per BigMint’s assessment, domestic 304-grade SS scrap stood at INR 111,000/t ex-Delhi, down INR 4,000/t w-o-w, while the imported variant of the same, originating from nearshore regions, was priced at $1,255/t, down $50/t CFR Mundra.

LME nickel prices down

At the time of reporting, three-month LME nickel prices stood at $15,285/t, reflecting a 3% drop from last week’s $15,725/t. Meanwhile, nickel stocks at LME-registered warehouses stood at 203,646 t, largely stable against the previous week’s 200,250 t.

BigMint’s w-o-w assessments

• Nearshore-origin SS 316 scrap (loose) was at $2,455/t, down $45/t w-o-w.
• Nearshore-origin SS 201 scrap (loose) was at $680/t, down $10/t w-o-w.
• Nearshore-origin SS 430 scrap (loose) was at $580/t, down $10/t w-o-w.
• SS 316 scrap, ex-Delhi, stood at INR 211,000/t, down INR 3,000/t w-o-w.

Market scenario

Imported scrap prices in India plunged following the drop in LME nickel tags. As per sources, major mills that typically import SS scrap have paused booking scrap until the market gains some stability.

Despite the fall in prices of imported scrap, offers for the same remained elevated. SS 304 scrap from nearshore regions was offered at around $1,290-1,310/t, while SS 316 offers were heard at approximately $2,500/t, both CFR Mundra. However, bids were significantly lower – SS 304 bids were at around $1,220-1,230/t. There was minimal interest in SS 316, as most mills preferred buying SS 304 and converting it, keeping the overall demand for stainless scrap subdued.

Meanwhile, in the domestic market, scrap prices also declined, mirroring the trend in the imported market and the drop in LME nickel tags.

Major mills reduced their scrap purchasing prices, with SS 304 grade now at INR 114,000-114,500/t and SS 316 grade at INR 210,000/t, based on 45-day payment terms.

Additionally, the availability of domestic scrap was heard to be good, as per market sources.

Outlook

The market expects an improvement in demand for finished stainless steel products by mid-April, fuelled by project-driven activities. This may trigger a rebound in scrap prices. However, price trends on the LME should be closely watched, as global market sentiment remains uncertain amid the ongoing US tariff concerns.