Indian stainless steel scrap prices hold firm despite muted buyer activity

• Festival season may see a surge in stainless steel demand
• Buyer inquiries subdued amid bid-offer disparity

India’s imported and domestic stainless steel (SS) scrap prices remained range-bound w-o-w while market activity remained slow amid sufficient inventory levels at mills and bid-offer disparities. Meanwhile, nickel prices on the London Metal Exchange (LME) moved sideways w-o-w.

According to BigMint’s assessment, domestic 304-grade SS scrap stood at INR 111,000/tonne (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 $1,260/t CFR Mundra, steady w-o-w.

LME nickel prices range-bound w-o-w

Nickel prices on the LME showed a slight uptrend. The three-month LME nickel price was recorded at $15,000/t, range-bound from last week’s $15,100/t. Nickel stocks in LME-registered warehouses slightly dropped to 209,598 t against the previous week’s 211,098 t.

Market updates

“Supply remains tight, supporting stainless steel scrap values, but buyer inquiries have been muted and no fresh deals were concluded due to the bid-offer gap,” a market participant said.

A trader added, “Demand for 316 scrap is healthy, though supply is limited as Korea is paying higher than India’s $2,470-80/t levels.”

Market players expect finished demand to pick up into the festival season, led by auto and infrastructure, with GST reform talks adding to near-term sentiment.

304 scrap was reported at $1,115-1,140/t CIF Rotterdam, $1,190-1,215/t CIF Japan, $1,280-1,320/t CIF South Korea, and $1,210-1,255/t in Taiwan.

BigMint’s daily scrap assessments

• Nearshore-origin SS 316 scrap (loose) stood at $2,465/t, up by $5/t w-o-w.
• Nearshore-origin SS 201 scrap (loose) was assessed at $630/t, steady w-o-w.
• Nearshore-origin SS 430 scrap (loose) was assessed at $600/t, up $5/t w-o-w.
• SS 316 scrap, ex-Delhi, stood at INR 211,000/t, steady w-o-w.

Outlook

In the near term, India’s stainless steel scrap market is expected to stay range-bound with limited buying as mills remain cautious amid sufficient inventories and a wide bid-offer gap. Tight supply of 316-grade scrap could lend some support, but overall demand is likely to stay subdued until seasonal buying ahead of the festival period picks up. Auto and infrastructure demand, coupled with GST-related policy discussions, may provide a sentiment boost, though trading activity is expected to remain slow.