India: Imported, domestic stainless steel scrap prices show mixed trends w-o-w; LME nickel tags drop

• Moderate trade activity seen amid sufficient inventories
• Scrap alternatives being preferred for cost, steady supply

India’s imported and domestic stainless steel (SS) scrap prices showed mixed trends w-o-w. Moderate trading activity was seen this week, driven by sufficient inventory levels at mills. Meanwhile, nickel prices on the London Metal Exchange (LME) recorded a modest drop w-o-w.

According to BigMint’s assessment, domestic 304-grade SS scrap stood at INR 112,000/tonne (t) ex-Delhi, down INR 500/t w-o-w. On the other hand, the imported variant of the same grade, sourced from nearshore regions, was priced at $1,280/t CFR Mundra, up $10/t w-o-w.

LME nickel prices drop w-o-w

Nickel prices on the LME showed a downtrend. The three-month LME nickel price was recorded at $14,840/t, down 4% from last week’s $15,485/t. Nickel stocks in LME-registered warehouses were up by 2% to 208,692 t against the previous week’s 204,456 t.

Market updates

According to market participants, some major mills are increasingly turning to cost-effective alternatives such as ferro nickel, nickel pig iron (NPI), and slabs in place of scrap. Indian steelmakers, in particular, are favouring NPI over imported scrap, citing its price advantage and more consistent availability.

Notably, stainless steel 304 scrap prices were heard traded at $1,060-1095/t CIF Rotterdam, $1,235-1260/t CIF Japan, $1,255-1280/t CIF South Korea, and $1,190-1210/t in Taiwan.

BigMint’s daily scrap assessments

• Nearshore-origin SS 316 scrap (loose) stood at $2,480/t, up by $5/t w-o-w.
• Nearshore-origin SS 201 scrap (loose) was assessed at $680/t, steady w-o-w.
• Nearshore-origin SS 430 scrap (loose) was assessed at $590/t, steady w-o-w.
• SS 316 scrap, ex-Delhi, stood at INR 211,000/t, up INR 1,000/t w-o-w.

Outlook

Stainless steel scrap prices are expected to remain range-bound amid volatility in LME nickel prices; arrivals of alternatives such as ferro nickel, NPI, and slabs; and need-based buying. Trading activity is likely to improve, while 316 grade prices are expected to rise further, driven by higher molybdenum costs.