India: Stainless steel scrap market remains subdued as major mills delays fresh bookings

• Mills maintain inventories and avoid fresh December bookings
• Finished stainless demand slowdown restricts procurement activity

India’s stainless steel scrap market remained under pressure in the week ending 12 December, with mills holding sufficient inventory and refraining from fresh bookings. Trading activity across key regions stayed muted, reflecting weak downstream demand and a cautious buying environment.

Market sentiments

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

Domestic scrap prices stayed largely unchanged, with selective mill purchases reported in the INR 101,000–103,000/t range on a cash basis. Market sources highlighted that subdued finished stainless steel demand is keeping procurement restrained.

A mill source noted, “The market is still very slow. We are not buying, and no procurement is planned for the rest of the month.” Another buyer added that despite stable price indications, activity remains subdued as mills face minimal offtake for finished products.

In the 316-grade segment, mills have largely paused procurement as molybdenum prices have fallen sharply in recent weeks. Despite this, some suppliers continue to quote higher levels, prompting mills to convert 316 from 304-grade material as a more cost-effective alternative. This pricing mismatch has further reduced buying interest.

For the 400-series, limited deals were reported, with 430-grade scrap heard booked at INR 56,700/t DAP Mumbai, indicating selective demand and cautious stocking patterns.

BigMint’s scrap assessments

• Nearshore-origin SS 316 scrap (loose): $2,400/t, down $30/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 hovering at $14,635/t  down 2% as compared to $14,920/t in the previous week. LME-registered nickel stocks stood at 252,852 t, a slight drop compared to the 253,116 t recorded in the previous week.

Outlook

Stainless steel scrap prices are expected to remain volatile in December as sluggish demand continues to cap trading volumes. With year-end caution persisting and lack of finished steel demand triggers visible, the market is likely to remain range-bound through December, with limited scope for any upward movement.