- 316 scrap supported by ferro molybdenum surge
- Weak downstream demand limits aggressive spot trades
India’s stainless steel scrap market remained largely firm during the week ended 22 May’26, although spot buying activity stayed cautious amid continued volatility in LME nickel prices and slow downstream demand. Market participants noted that mills largely continued with need-based procurement, while transactional activity remained selective amid weak finished stainless steel demand.
304-grade stainless steel scrap demand remained slow during the week, with buying sentiment staying subdued amid weak downstream activity. BigMint’s benchmark domestic 304 stainless steel scrap prices declined by INR 3,000/t w-o-w to INR 143,000/t DAP Delhi.
In contrast, 316-grade stainless steel scrap supply remained tight in both domestic and overseas markets, supporting stronger pricing sentiment. BigMint’s 316 scrap assessment increased by INR 4,500/t to INR 275,000/t DAP Delhi, supported by elevated ferro molybdenum prices and global molybdenum concentrate shortages.
Market participants highlighted that firm Chinese demand for ferro molybdenum continued to keep alloy costs elevated, supporting 316 scrap prices despite cautious spot buying activity.
Import market remains firm
Imported stainless steel scrap offers also remained elevated during the week amid firm international market sentiment, higher stainless steel production costs globally, and tight material availability across major exporting regions. BigMint’s imported 304 scrap assessment remained stable at $1,550/t CFR Nhava Sheva, while imported 316 scrap prices increased by $30/t w-o-w to $2,900/t CFR India.
Trade sources reported that imported 316 scrap offers were largely heard around $2,950-2970/t CFR India, while workable bids remained lower at $2,850-2,900/t, reflecting widening negotiation gaps between buyers and sellers. Meanwhile, European-origin 304 scrap offers were heard near $1,625/t, while 316-grade material was offered close to $2,975/t.
China market sentiment remains cautious
China’s stainless steel scrap market remained under pressure during the week amid sluggish finished stainless steel demand, softer spot prices, and continued weakness in high-grade NPI prices. Market sentiment stayed largely bearish as major steel mills lowered molten steel procurement prices and continued aggressive bargaining for raw materials, pulling 304 scrap prices lower across east China and Foshan markets. 304 scrap were reported with a price range of RMB 10,150-10,450/t ($1,439-1,537/t).
However, downside pressure remained limited as stainless steel scrap continued to maintain a clear cost advantage over high-grade NPI, supporting steady mill procurement interest and stable production schedules. Market participants also noted improving sentiment following expectations of easing reverse invoicing and tax invoice-related issues, which could gradually improve transaction liquidity and support future scrap buying activity.
Outlook
India’s stainless steel scrap market is expected to remain broadly firm in the near term, supported by tight domestic scrap availability, elevated alloy costs, and firm import offers. However, continued volatility in nickel prices, weak downstream stainless steel demand, and cautious procurement strategies are likely to restrict aggressive spot transactions. Market participants will closely monitor global nickel developments, ferro molybdenum price movements, and Chinese stainless steel market conditions for further directional cues.
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