- Fresh scrap bookings likely from next week
- Dull finished market trends weigh on scrap
India’s imported and domestic stainless steel scrap prices remained range-bound w-o-w amid moderate buying activity.
According to BigMint’s assessment, domestic 304-grade SS scrap stands at INR 113,500/t ex-Delhi, steady w-o-w . On the other hand, the imported variant of the same grade, sourced from nearshore regions, was priced at $1,320/t CFR Mundra, largely stable w-o-w.
LME nickel prices dip w-o-w
Nickel prices on the London Metal Exchange (LME) have shown little movement. The three-month LME nickel price was recorded at $15,320/t, down from last week’s $15,695/t. Nickel stocks in LME-registered warehouses saw a slight decrease, standing at 201,930 t, compared to the previous week’s 202,470 t.
BigMint’s daily scrap assessments
Nearshore-origin SS 316 scrap (loose) at $2,490/t, up $5/t w-o-w.
Nearshore-origin SS 201 scrap (loose) at $710/t, up by $10/t w-o-w.
Nearshore-origin SS 430 scrap (loose) at $600/t, steady w-o-w.
SS 316 scrap, ex-Delhi, stood at INR 211,500/t, steady w-o-w.
Market insights
The market remains quiet on the finished goods front, prompting buyers to proceed with scrap bookings at a slower pace.
According to market participants,“316 grade stainless steel continues to see limited usage, while 304 grade remains widely available in the market.”
Additionally, offers for bulk quantities are currently elevated, prompting buyers to adopt a cautious, wait-and-watch approach.
A trader source mentioned, “Offers are currently on the higher side for good quantities, so we’re adopting a wait-and-watch approach for now. With the month just beginning, we plan to start fresh bookings from next week onward.”
Other updates
European cold-rolled stainless steel sheet prices dipped further in May, driven by mills looking to fill order books amid tepid downstream demand. Despite a few high-end trades, overall sentiment remained weak, with prices expected to decline further. Rising energy costs continue to erode margins, pushing some medium-sized mills to sell at breakeven or losses.
Attempts by traders to hike prices fell flat, as aggressive pricing by major producers weighed on the market. Widespread buyer caution, amplified by fears of Asian imports and global trade tensions, has led distributors to defer large purchases. May alloy surcharges for 304 also dropped 5.4% to $2,209/t and 316 to $3,652/t signalling growing concern over Q2 order volumes.
Outlook
Stainless steel scrap prices are expected to remain range-bound in the near term as market participants adopt a cautious stance.
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