India: Stainless steel scrap prices soften on subdued demand amid sufficient availability

• Weak post-Diwali buying keeps market sentiment cautious
• Mills shift to NPI and billets reducing demand for scrap

India’s stainless steel scrap prices declined this week amid subdued buying interest and sufficient scrap availability in the domestic market, alongside increased reliance on alternatives such as semi-finished products and nickel pig iron (NPI). BigMint assessed 304-grade domestic scrap at INR 114,000/t ex-Delhi, down INR 2,000/t w-o-w, while imported 304-grade scrap from nearshore origins was assessed at $1,240/t CFR Mundra, down $40/t w-o-w.

Market sentiments

According to mill sources, market activity remained muted as buyers refrained from fresh bookings. Increased arrivals of NPI and billets from nearby regions have provided cost-effective substitutes with shorter lead times, reducing the immediate need for scrap.

Market chatter suggests a leading stainless steel producer has sold significant volumes of 304 and 316 billets from Indonesia, further denting scrap demand. Billet offers were heard around $1,510-1,515/t, and no major scrap deals were concluded due to wide bid-offer gaps.

Another market participant said, in the imported segment, SS 304 scrap traded in the range of $1,240-1,260/t, with limited deals around $1,250-1,260/t. Weak finished steel demand and slower-than-expected post-Diwali recovery kept overall sentiment cautious.

Global updates
European stainless steel market sentiment remains subdued due to weak demand, slow economic recovery, and cautious purchasing behavior. High energy and production costs continue to pressure mills, while imports from Asia add competitive pricing challenges. Inventories remain sufficient, limiting restocking activity. Overall, market participants maintain a wait-and-watch approach as price recovery signals are still unclear.

BigMint’s scrap assessments-

• Nearshore-origin SS 316 scrap (loose): $2,500/t, down by $30/t w-o-w.
• Nearshore-origin SS 201 scrap (loose): $645/t, down $15/t w-o-w.
• Nearshore-origin SS 430 scrap (loose): $560/t, down $15/t w-o-w.
• SS 316 scrap ex-Delhi: INR 219,000/t, down by INR 2,000/t w-o-w.
• SS utensil ex-Delhi: INR 59,000/t, down by INR 1,000/t w-o-w.

LME nickel range-bound

Nickel prices on the London Metal Exchange (LME) remained range-bound, with the three-month contract at $15,210/t, slightly down by $75/t versus $15,285/t last week. LME-registered nickel stocks stood at 251,640 t as against 250,854 t in the previous week.

Outlook

In the near term, market sentiment is expected to remain cautious, with participants anticipating further price corrections in both the finished stainless steel and scrap segments.