India: Domestic stainless steel scrap prices edge up on better buying, imports slow

• Domestic scrap gains on credit advantage and tight availability
• Imported scrap demand subdued amid cost pressure and bid-offer gaps

India’s domestic stainless steel scrap prices edged up in the week ended 6 February, supported by improved buying interest and tight availability in the local market. However, imported scrap offers remained largely stable, as buyers stayed cautious amid cost pressures and weak appetite.

As per BigMint’s assessments, domestic 304-grade scrap was assessed at INR 118,000/t DAP Delhi, up by INR 2,000/t w-o-w, while nearshore-origin 304 scrap stood at $1,280/t CFR Mundra, down marginally by $5/t w-o-w.

In the domestic market, prices firmed up as buying activity improved and buyers increasingly preferred local scrap over imports. Market participants noted that landed costs of imported scrap are currently comparable to domestic material, but imports require advance payment, whereas domestic transactions typically offer a 30–45 day credit window. This credit flexibility provided a clear edge to domestic scrap procurement. Additionally, supply was reported to be limited across key collection centers, which further supported the uptick in domestic prices.

Imported scrap demand remained subdued during the week due to sustained cost pressures and the availability of semi-finished stainless steel in the domestic market, which reduced immediate scrap requirements. Although LME nickel prices showed some recovery during the week, imported scrap offers remained firm, and buyers were unwilling to book at current levels. This resulted in a widening bid-offer gap and limited deal closures.

A steel mill official said, “We have held our buying for a while since LME nickel has come down from $19,000/t levels to around $16,000-17,000/t, and the currency is also soft.”

LME nickel prices edge down w-o-w

On the cost side, benchmark three-month contract nickel prices on the London Metal Exchange (LME) closed at $17,010/t on 6 February, down from $17,700/t in the previous week. LME-registered nickel stocks stood at 286,074 t, largely unchanged w-o-w.

BigMint’s scrap assessments

• Nearshore-origin SS 316 scrap (loose): $2,560/t, down by $20/t w-o-w.
• Nearshore-origin SS 201 scrap (loose): $670/t, remained unchanged w-o-w.
• Nearshore-origin SS 430 scrap (loose): $600/t, steady w-o-w.
• SS 316 scrap, DAP Delhi: INR 220,000/t, up INR 1,000/t w-o-w.
• SS utensil scrap, DAP Delhi: INR 64,000/t, up by INR 2,000/t w-o-w.

Outlook

Domestic stainless steel scrap prices are expected to remain firm in the near term, supported by tight availability and steady buying interest. Imported scrap demand is likely to stay cautious unless nickel prices stabilise further and currency conditions turn more supportive.