- Producers eye domestic market amid reduced exports
- IF route mills face tepid demand, sales pressure
Prices of Indian stainless steel (SS) finished flats increased w-o-w following a hike by a major coil maker. Meanwhile, longs held steady w-o-w.
Additionally, India’s leading stainless steel coil manufacturer increased tags of 300 series products, effective 6 May 2025, amid improved demand. As a result, prices of grades 304 and 316 HRC and CRC were raised by INR 2,000/tonne (t) ($23/t).
BigMint’s benchmark assessment for stainless steel (304 series) hot-rolled coils (HRCs) stood at INR 186,000/t, up by INR 1,000/t w-o-w, while 304L (25-100 mm) black round bars stood at INR 160,000/t, stable w-o-w, both ex-Mumbai.
LME nickel tags, Asian NPI steady w-o-w
At the time of reporting, three-month LME nickel prices stood at $15,565/t, largely stable against last week’s $15,545/t. Nickel stocks in LME-registered warehouses stood at 200,082 t, a minor decline compared to 201,564 t in the previous week.
Chinese portside prices of nickel pig iron (NPI) (grade 13%>Ni>10%) remained steady w-o-w at RMB 975/metric tonne unit (mtu) ($134/mtu). Meanwhile, Indonesian FOB prices of NPI (grade 13%>Ni>10%) stood at $115/mtu.
Finished market sentiments
As per BigMint’s assessment, SS 316 HRCs increased by INR 1,000/t w-o-w at INR 325,000/t ex-Mumbai.
In recent times, Indian stainless steel makers have been focusing more on the domestic market to offset reduced exports to the US, due to ongoing US tariffs. Additionally, there were concerns about the influx of cheap imports, with some companies seeking policy support.
China, the world’s largest steel producer, is expected to increase steel exports due to surplus output and weak domestic demand. This could lead to a surge of Chinese steel entering global markets over the next 3-4 months, posing a competitive threat to steel industries in other countries.
As per BigMint’s assessment, SS 316L black round bars stood at INR 270,000/t, while 316L (25-100 mm) bright bars were at INR 286,000-288,000/t, both ex-Mumbai. Additionally, SS 304 (5-16 mm) wire rods stood at INR 156,000/t ex-Mumbai. Prices of all products were steady w-o-w.
Moreover, a market participant noted, “Mills operating via the IF route continue to face sales pressure, with market activity remaining subdued. While there has been a marginal uptick in trade inquiries over the past two weeks, overall demand for stainless steel is still tepid.”
While geopolitical tensions have not yet had a major impact on market fundamentals, with any effects likely to be short-lived, uncertainty persists in the global market environment.
Additionally, market activity was subdued for long products, with only need-based buying observed and prices unchanged since last month.
Chinese stainless steel prices steady
In China, prices of domestic stainless steel 304-grade cold-rolled coils (CRCs) stood at RMB 14,050/t ($1,933/t) exw, stable w-o-w, while FOB tags of 304-grade CRCs were at $1,910/t.
Notably, the Chinese market was closed over 1-5 May for the Labour Day holidays, with activity resuming following the break.
Raw materials overview
Ferro molybdenum: Indian ferro molybdenum prices were largely stable w-o-w, down marginally by INR 6,000/t ($71/t) as compared to the previous assessment on 30 April. As per BigMint’s assessment on 7 April, ferro molybdenum prices in India were at INR 2,541,000/t ($30,043/t) exw.
Ferro chrome: Indian high-carbon ferro chrome (HC60%, Si:4%) prices were at INR 100,400/t ($1,184/t) exw-Jajpur, down by INR 200/t ($2/t) w-o-w.
Ferrous scrap: India’s imported scrap market remained sluggish last week, with EU-origin HMS 80:20 dropping $3-4/t w-o-w to $345-348/t CFR Nhava Sheva and shredded prices falling by $2-3/t w-o-w to $368-370/t CFR. Mills preferred ready material and avoided bulk bookings, reflecting limited confidence. Despite currency support and firm offers from suppliers, the wide bid-offer gap and slow inquiries kept trading activity subdued.
Outlook
Stainless steel prices are expected to remain range-bound, with moderate activity to be observed in the flats segment. Longs are expected to stay subdued.
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