India: Stainless steel scrap prices move higher w-o-w on rising nickel costs

• Domestic mills re-enter market, lift local scrap prices
• Mills lift bids to secure material amid tight scrap supply

India’s stainless steel scrap prices edged up w-o-w, as major mills re-entered the domestic market, with imported scrap prices remaining supported by stronger nickel fundamentals and global cues. Industry sources said booking activity has picked up, but limited availability of imported scrap — amid rising LME nickel prices — kept offers firm.

Domestic 304-grade scrap was assessed at INR 109,000/t DAP Delhi, up by INR 5,000/t w-o-w, while nearshore-origin 304 scrap rose $50/t to $1,270/t CFR Mundra.

Imported 304 offers were heard at $1,260-1,300/t CFR, with deals around $1,260/t. In the domestic market, major mills quoted INR 109,000-111,000/t DAP Delhi.

A major buyer said the market remains volatile due to LME nickel swings, but current supply concerns may not be structural. The buyer noted that scrap-LME correlation has weakened due to better supply and the growing use of NPI as a substitute. Uncertainty around prevailing geopolitical tensions with the US has also limited visibility on future sales, keeping buyers focused on near-term needs and delaying imported scrap bookings.

BigMint’s scrap assessments

• Nearshore-origin SS 316 scrap (loose): $2,545/t, up $115/t w-o-w.
• Nearshore-origin SS 201 scrap (loose): $665/t, up $25/t w-o-w.
• Nearshore-origin SS 430 scrap (loose): $600/t, up $60/t w-o-w.
• SS 316 scrap, DAP Delhi: INR 210,000/t, up INR 5,000/t w-o-w.
• SS utensil scrap, DAP Delhi: INR 61,000/t, up INR 3,000/t w-o-w.

Global sentiments

US stainless steel scrap prices edged higher in early January, supported by a rebound in LME nickel and firmer molybdenum prices. However, physical demand remained weak, and export activity was largely frozen due to LME volatility.

LME nickel supports cost sentiment

Benchmark three-month contract nickel prices on the London Metal Exchange (LME) were at $17,540/t on 9 January, up by 3.6% from $16,915/t in the previous week. LME-registered nickel stocks stood at 276,300 t, an 8% increase compared to 255,282 t in the previous week.

Outlook

India’s stainless steel prices are expected to increase next week, driven by a rise in raw material costs and positive market sentiment.