India: Stainless steel scrap prices remain elevated amid supply disruptions, gas supply concerns

• Limited vessel availability restricts scrap import flows
• Gas supply issues impact operations of scrap processors

India’s stainless steel scrap prices remained on the higher side in the week ended 13 March, supported by supply disruptions and rising logistics costs amid ongoing geopolitical tensions. Market participants reported shipment delays from West Asia and rising freight surcharges, while domestic scrap availability remained tight as suppliers held back material expecting further price increases.

BigMint assessed domestic 304-grade stainless steel scrap steady w-o-w at INR 120,000/t DAP Delhi. Major mills were heard procuring 304 scrap at INR 124,000-125,000/t, while 316 scrap was traded at INR 227,000–228,000/t on credit-based payment terms.

On the imports front, nearshore-origin 304 scrap increased by $40/t w-o-w to $1,380/t CFR Mundra.

Market sentiments

Market participants noted that overall sentiment remained firm, although trading activity was cautious as buyers adopted a wait-and-watch approach amid volatile freight rates, shipment uncertainties, and rising dollar strength.

Domestic scrap availability remained under pressure as gas supply constraints affected scrap processing operations. Several processors reported reduced production due to LPG supply disruptions, limiting scrap preparation and supply in the market. Market sources noted that if supply issues persist, production levels may face further cuts in the coming weeks.

Additionally, suppliers were reportedly holding back material amid expectations of higher prices, further tightening domestic supply.

Global update

European stainless steel scrap prices surged to a record high in the week to 12 March amid strong near-term demand and expectations of further increases in the second quarter. SS 18-8 (grade-304) stainless steel scrap was assessed at Eur 1,300/t ($1,490/t) CIF Rotterdam, up Eur 60/t ($68/t) w-o-w, marking an all-time high. Market sources reported tradable values in the range of Eur 1,300-1,380/t ($1,490-1,580/t), with participants expecting prices to rise further for April deliveries as mills continue procurement and raw material costs remain elevated.

BigMint’s scrap assessments

Nearshore-origin SS 316 scrap (loose): $2,680/t, up by $45/t w-o-w.

Nearshore-origin SS 201 scrap (loose): $705/t, up $15/t w-o-w.

Nearshore-origin SS 430 scrap (loose): $630/t, up $10/t w-o-w.

SS 316 scrap, DAP Delhi: INR 225,000/t, up INR 1,000/t w-o-w.

SS utensil scrap, DAP Delhi: INR 69,000/t, steady w-o-w.

Outlook

India’s stainless steel scrap market is expected to remain firm in the near term amid ongoing logistics disruptions and rising freight costs linked to geopolitical tensions. Limited vessel availability and war-related surcharges may continue to restrict import activity, prompting mills to rely more on domestic scrap supplies. At the same time, gas supply constraints at some processing units could keep domestic availability tight, which may continue to lend support to scrap prices in the coming weeks.