- Buyers limit procurement amid sharp correction in LME nickel
- China scrap prices soften on weak futures and soft demand
India’s stainless steel scrap market remained under pressure in the week ended 3 July 2026, as weak finished steel demand and a sharp correction in LME nickel prices dampened buying sentiment. LME three-month nickel prices fell rapidly to around $16,200/t from above $18,000/t within the past two weeks, triggering a downward correction in stainless steel scrap prices.
With nickel prices remaining volatile, most stainless steel mills initially kept procurement on hold while monitoring market direction. Although a few mills have recently resumed buying, a wide gap between buyers’ bids and suppliers’ offer prices continued to limit trading activity. Procurement remained largely hand-to-mouth, with buyers restricting purchases to immediate requirements.
Market participants noted that the sudden decline in nickel prices left many traders holding higher-cost inventories, making it difficult to align selling prices with prevailing market levels. Consequently, transaction volumes remained thin. Domestic stainless steel scrap continued to be more competitive than imported material, while most major mills maintained a cautious procurement strategy.
According to BigMint’s assessment, domestic 304-grade stainless steel scrap prices declined by INR 5,000/t w-o-w to INR 137,000/t DAP Delhi, reflecting weak buying sentiment and softer finished steel prices.
Imported 304-grade stainless steel scrap dropped by $60/t w-o-w at $1,470/t CFR Nhava Sheva, while imported 316-grade scrap prices were stood at $2,870/t, dropped by $80/t CFR India.
Market sources reported imported SS304 offers at around $1,480-1,490/t, whereas buyers’ workable bids were largely in the $1,400-1,450/t range, highlighting the persistent bid-offer disparity. Meanwhile, imported 316-grade scrap offers remained above $2,900/t, supported by tight availability and elevated molybdenum prices. As per BigMint’s assessment, Ferro Molybdenum (FeMo 60%) was assessed at INR 4,037,000/t Exw India.
China market
China’s 304 stainless steel scrap market remained under pressure this week, with East China prices declining to RMB 10,350-10,450/t, while Foshan prices eased to RMB 10,200-10,500/t amid sluggish stainless steel futures and weak spot demand. Although stainless steel scrap continued to maintain a cost advantage over high-grade nickel pig iron (NPI), the traditional off-season, reduced steel mill production, and uncertainty surrounding Indonesia’s nickel ore quotas kept buying interest subdued. As a result, market participants largely remained on the sidelines, with stainless steel scrap prices expected to stay range-bound to weak in the near term.
LME nickel remains bearish w-o-w
LME three-month nickel prices declined by 3% w-o-w to $16,225/t from $16,740/t a week earlier. LME nickel inventories also eased to 274,620 t, compared with 274,830 t in the previous week, although the inventory decline was insufficient to offset the bearish sentiment created by weaker prices.
Outlook
The stainless steel scrap market is expected to trade with a cautious tone in the short term, supported by limited domestic scrap availability despite weak procurement from mills. Buying activity is likely to remain hand-to-mouth until nickel prices find stability. A recovery in finished stainless steel demand and the return of mill purchasing could gradually improve market sentiment in the coming weeks.
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