- Long products gain on improved bookings and firmer sentiment
- Nickel strength and feedstock shortages keep overall market supported
India’s stainless steel market remained firm this week, with long products outperforming flats as tighter raw material availability and improved buying sentiment supported prices. Supply-side constraints, including shortages of key inputs and limited gas availability affecting mill operations, continued to underpin the market.
Flats remain range-bound on cautious buying
The flat products segment saw limited movement, with weak demand and buyer resistance restricting fresh transactions. Market participants largely stayed away from bulk bookings, anticipating a possible correction after the recent nickel-led uptrend.
BigMint’s benchmark 304 hot-rolled coil (HRC) was unchanged w-o-w at INR 217,000/t ex-Mumbai, while 316 HRC also held steady at INR 375,000/t ex-Mumbai. Traders said inquiries were present, but conversion into deals remained slow as buyers preferred hand-to-mouth procurement.
Longs gain on tighter supply
The finished longs segment performed better, supported by selective bookings from industrial and project-linked consumers. Supply tightness and higher replacement costs also supported offers.
304L black round bars remained stable w-o-w at INR 185,000/t ex-Mumbai, while 316L black round bar prices increased by INR 5,000/t to INR 315,000/t ex-Mumbai.
Market participants noted that sales of 316-grade longs were partly affected by scrap shortages, with some producers substituting 304-grade scrap in melt mixes to sustain output. This highlights ongoing pressure in the raw material chain, particularly for higher-alloy grades.
Raw material scenario
Outlook
India’s stainless steel market is expected to remain firm in the near term, supported by elevated nickel prices after Indonesia’s ore pricing adjustments. However, uncertain demand visibility and constrained feedstock availability are likely to keep market activity cautious.
Leave a Reply