India: Imported, domestic stainless steel scrap prices dip amid moderate buying activity

• Sufficient inventory keeps prices muted
• LME nickel prices trend down w-o-w

India’s imported and domestic stainless steel (SS) scrap prices dipped w-o-w amid moderate trading activity driven by sufficient inventory levels.

According to BigMint’s assessment, domestic 304-grade SS scrap stands at INR 114,000/t ex-Delhi, stable w-o-w . On the other hand, the imported variant of the same grade, sourced from nearshore regions, was priced at $1,270/t CFR Mundra, down $15/t w-o-w.

LME nickel price trends w-o-w

Nickel prices on the London Metal Exchange (LME) have shown little movement. The three-month LME nickel price was recorded at $15,135/t, slightly down from last week’s $15,165/t. Nickel stocks in LME-registered warehouses went up by 1.2%, standing at 207,282 t, compared to the previous week’s 204,738 t.

BigMint’s daily scrap assessments

• Nearshore-origin SS 316 scrap (loose) stood at $2,475/t, down $10/t w-o-w.
• Nearshore-origin SS 201 scrap (loose) was assessed at $695/t, down by $5/t w-o-w.
• Nearshore-origin SS 430 scrap (loose) was assessed at $600/t, steady w-o-w.
• SS 316 scrap, ex-Delhi, stood at INR 210,000/t, steady w-o-w.

Market updates

Market activity remained muted due to sufficient inventory levels in the supply chain, which kept buying interest limited and trade volumes low. Bid offer disparities were seen. Additionally, 316 expected to increase further amid rising costs of ferro molybdenum prices reached their highest point since September 2023 as supply crunch of molybdenum oxide still persists in the market.

According to market participants, Stainless steel scrap 304 prices stand at $1,128/t CIF Rotterdam, $1,256/t CIF Japan, $1,278/t CIF South Korea, and $1,212/t in Taiwan. Deals were also heard at $1,260/t from Malaysian origin and $1,250/t from UK origin.

Market sources spoke of a cautious sentiment, with many buyers actively exploring alternative options and sourcing strategies amid ongoing price fluctuations and logistical challenges.

Additionally, as per BigMint’s data, India’s slab imports rose by 12% m-o-m, reaching 56,000 t in June, compared to 50,000 t in the previous month.

Outlook

Stainless steel imported and domestic scrap prices are expected to decline further due to subdued demand, with demand expecting to pick up post-monsoon.