India: Stainless steel scrap market remains inactive as mills limit buying on high stocks

• Mills maintaining inventories, delaying scrap purchases
• Sentiment may remain weak through Dec’25 amid poor sales

India’s stainless steel scrap market was muted this week weighed down by sluggish finished product demand and limited procurement activity from mills. Most producers continue to operate with adequate inventory levels, while several major players have temporarily paused fresh bookings.

Market sentiments

Market participants reported extremely low liquidity in the spot market. According to a trader, “The market is completely inactive right now as there are hardly any buyers. Quotes have become irrelevant because mills are not purchasing. Sentiment is likely to remain weak through December. Scrap buying is minimal, especially with semi-finished imports remaining active and finished stainless steel sales performing poorly.”

Domestic 304-grade scrap was assessed by BigMint at INR 106,000/t ex-Delhi, down INR 1,000/t w-o-w, while imported 304-grade scrap prices from nearshore origins were $1,190/t CFR Mundra, down $40/t.

The downturn is more pronounced in the 300-series segment where demand has been particularly low. Mills are sufficiently stocked and are staying out of the imported scrap market for the moment.

However, traders anticipate a potential shift in sentiment following the recent Quality Control Order (QCO) extension, which could improve clarity for buyers. Some market participants expect scrap demand to begin recovering by the second week of December driven by restocking needs and improved downstream movement.

BigMint’s scrap assessments

Nearshore-origin SS 316 scrap (loose): $2,440/t, down $35/t w-o-w.

Nearshore-origin SS 201 scrap (loose): $620/t, up $10/t w-o-w.

Nearshore-origin SS 430 scrap (loose): $560/t, steady w-o-w.

SS 316 scrap ex-Delhi: INR 207,000/t, down by INR 1,000/t w-o-w.

SS utensil ex-Delhi: INR 59,000/t, down INR 1,000/t w-o-w.

LME nickel

Nickel prices on the London Metal Exchange (LME) dropped slightly, with the three-month contract at $14,840/t, up by 3% versus $14,355/t last week. LME-registered nickel stocks stood at 255,450 t, range-bound against 254,172 t in the previous week.

Outlook

Stainless steel market is expected to remain cautious in the near term, with scrap trading likely to stay limited unless downstream demand shows a meaningful improvement. Price movements are projected to remain largely range-bound due to weak finished stainless steel demand and conservative procurement by mills.