India: Stainless steel scrap market remains under pressure on weak demand

• Market remains quiet with minimal inquiries and movement
• US stainless scrap hits two-year lows on oversupply

India’s stainless steel scrap market stayed under pressure in the week ended 5 December, with mills maintaining comfortable inventory levels and avoiding aggressive procurement. Trading activity across major regions remained muted, reflecting weak downstream demand and limited buying interest.

Market sentiments

The market continued to remain quiet, with minimal inquiries and restricted movements across grades. Participants reported that activity has been largely stagnant this week as mills remained sufficiently stocked and adopted a wait-and-watch approach.

“Some small-quantity bookings were heard in the market, but overall demand for finished goods remains very slow in the stainless steel sector,” a market participant told BigMint. Some mills also sourced scrap at between INR 103,000-104,000/t.

Domestic 304-grade scrap was assessed by BigMint at INR 107,000/t ex-Delhi, up INR 1,000/t w-o-w, while imported 304-grade scrap prices from nearshore origins were $1,180/t CFR Mundra, down $10/t.

Global updates

US stainless steel scrap market sinks to two-year lows

The US stainless steel and nickel alloy scrap market weakened sharply in the first week of December, with trading activity nearly stalled amid poor demand, oversupply, and year-end inventory pressure. Scrap prices of 304 and 316 grades fell to multi-year lows as domestic mills and exporters stayed out of the market, while continued weakness of nickel prices further dampened sentiment. Export demand from Asia and Europe remained soft, leaving the US market with excess material and limited near-term support.

Europe: Stainless steel prices edge up as import quotas tighten

European stainless steel prices firmed in December after the EU’s stricter import quotas sharply reduced Asian inflows, with purchases beyond quota attracting double duties. The sudden drop in import availability has boosted domestic mills’ pricing power, despite sluggish downstream demand. Higher scrap costs and expectations of increased compliance expenses under CBAM also supported offers. Prices for 304 and 316 CR sheets recorded modest upticks across Spain, Italy, Germany, and northern Europe amid constrained competition.

BigMint’s scrap assessments

• Nearshore-origin SS 316 scrap (loose): $2,430/t, down $10/t w-o-w.
• Nearshore-origin SS 201 scrap (loose): $620/t, steady w-o-w.
• Nearshore-origin SS 430 scrap (loose): $560/t, steady w-o-w.
• SS 316 scrap ex-Delhi: INR 207,000/t, steady w-o-w.
• SS utensil ex-Delhi: INR 59,000/t, steady w-o-w.

LME nickel

Nickel prices on the London Metal Exchange (LME) edged up slightly, with the benchmark three-month contract closing at $14,950/t on 4 Dec, compared to  $14,880/t in the previous week. LME-registered nickel stocks stood at 253,116 t, a slight drop compared to the 255,450 t recorded in the previous week.

Outlook

Stainless steel prices are expected to remain muted, as weak demand caps scrap trading volumes. Any significant price movement appears unlikely in December as the market remains cautious overall.