- 316 series gains sharply amid molybdenum shortage
- Buyers remain cautious despite firm market sentiment
India’s stainless steel finished market remained elevated in the week ended 13 May 2026, supported by rising nickel and ferro molybdenum prices, while buying activity continued on a requirement basis amid persistent cost pressure.
Market participants noted that ferro molybdenum prices have climbed to the highest levels since March 2023 due to an ongoing global shortage of molybdenum concentrate and aggressive procurement by Chinese mills. The sharp increase in alloy costs continued to support higher stainless steel offers, particularly in the 316 series segment.
Flats segment sees alloy-led price increase
India’s stainless steel flat products market moved higher during the week, primarily driven by elevated nickel prices supporting the 300-series segment. Meanwhile, prices in the 200-series remained under pressure following the extension of QCO exemptions until 26 October 2026, which has eased direct imports into India and intensified competitive pressure from Chinese-origin material.
A major domestic stainless steel producer revised its HR and CR coil prices effective 13 May, citing rising nickel and molybdenum costs alongside stronger Chinese market sentiment. Revised prices included an increase of INR 4,000/t for 304/304L HR coils, INR 3,000/t for 304/304L CR coils, and INR 10,000/t for 316/316L HR and CR coils.
BigMint’s benchmark 304 HRC prices increased by INR 3,000/t to INR 227,000/t ex-Mumbai, while 316 HRC prices rose sharply by INR 10,000/t to INR 400,000/t ex-Mumbai.
Longs market remains firm but cautious
India’s stainless steel longs market also moved higher during the week, supported by rising scrap and alloy costs. However, market activity remained cautious as buyers awaited more stability in raw material prices before taking fresh positions.
The 316 grade segment witnessed sharper gains amid tightening scrap availability and elevated ferro molybdenum prices. BigMint’s benchmark 304L black round bar prices increased by INR 6,000/t to INR 201,000/t ex-Mumbai, while 316L black round bars rose by INR 5,000/t to INR 345,000/t.
A trader noted that while inquiries have improved, actual transaction volumes remain moderate as buyers remain cautious about the sustainability of the recent price rally.
On the global front, indicative levels for 304 Bright bars were at around $3,400-3,500/t and 316 bright bars were at around $4,500-4,600/t FOB Europe.
China stainless steel market sentiment
China’s stainless steel market also strengthened after the Labour Day holiday, supported by rising ferro-nickel costs and concerns over Indonesian nickel supply following discussions around export taxes and operational disruptions. Major producer Tsingshan raised 304 stainless steel guidance prices, while traders and agents largely held inventories in anticipation of further increases. However, market participants noted that downstream demand remained cautious, with rising inventories and higher 300-series production likely to limit aggressive upside in the near term.
Raw material scenario
Outlook
India’s stainless steel market is expected to remain firm in the near term, supported by elevated nickel and molybdenum prices, tightening raw material availability, and firm global alloy markets. However, weak downstream demand and cautious procurement are likely to restrict large-volume transactions.
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