- LME nickel gains support overall cost sentiment
- Mills re-enter scrap bookings amid cautious sentiment
India’s stainless steel scrap market remained firm w-o-w as buying activity improved in the week ended 16 January, with mills re-entering the market for fresh bookings. However, participants remained cautious amid nickel price volatility and expectations of a further rise in scrap prices. Imported scrap prices edged higher, supported by firm global cues and rising LME nickel. Industry sources noted improved booking activity, although limited availability of imported material-especially 316 and 201 scrap-continued to keep offers firm.
Domestic 304-grade scrap was assessed at INR 110,000/t DAP Delhi, up by INR 1,000/t w-o-w, while nearshore-origin 304 scrap rose $10/t to $1,280/t CFR Mundra.
Imported 304 offers were heard at $1,260-1,300/t CFR, with deals around $1,270/t. In the domestic market, major mills quoted INR 109,000-111,000/t DAP Delhi.
As per market participants, Korea 304 scrap is more than $1350/t, in Europe domestic 304 scrap is around $1,200/t.
BigMint’s scrap assessments
- Nearshore-origin SS 316 scrap (loose): $2,575/t, up $30/t w-o-w.
- Nearshore-origin SS 201 scrap (loose): $670/t, up $5/t w-o-w.
- Nearshore-origin SS 430 scrap (loose): $600/t, steady w-o-w.
- SS 316 scrap, DAP Delhi: INR 212,000/t, up INR 2,000/t w-o-w.
- SS utensil scrap, DAP Delhi: INR 61,000/t, steady w-o-w.
LME nickel supports cost sentiment
Benchmark three-month contract nickel prices on the London Metal Exchange (LME) were at $18,200/t on 16 January, up by 2.2% from $17,800/t in the previous week. LME-registered nickel stocks stood at 285,282 t, remained largely range-bound as compared to 284,790 t in the previous week.
Outlook
India’s stainless steel prices are expected to remain on the higher side, driven by a rise in raw material costs and positive market sentiment.
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