- Weak downstream demand keeps 304-grade prices under pressure
- 316 HRC rises INR 5,000/t on tight supplies and higher alloy costs
India’s stainless steel finished market remained sluggish during the week ended 15 July, as weak downstream demand continued to outweigh rising raw material costs. Buyers remained cautious, limiting purchases to immediate requirements amid expectations of further price corrections.
While the 304 segment remained under pressure, 316-grade products bucked the broader trend, supported by higher molybdenum prices and tight material availability. A firmer US dollar against the Indian rupee also increased replacement costs for imported raw materials, providing additional cost support.
BigMint’s assessment for ferro molybdenum (Fe60%) exw stood at INR 4,160,000/t – up by INR 15,000/t from the previous assessment on 10 July.
Finished flats
Trading activity in the flat products segment remained muted, with distributors reporting limited enquiries from downstream consumers. Buyers continued to purchase only against immediate requirements, expecting mills to offer further discounts amid weak market conditions.
BigMint’s benchmark assessment for 304 HRC remained unchanged at INR 213,000/t, while 316 HRC increased by INR 5,000/t to INR 395,000/t. Market participants attributed firm in 316-grade prices to higher ferro molybdenum costs and tight spot availability. Meanwhile, elevated inventories and liquidity constraints prompted competitive selling, with mills and distributors offering selective discounts to improve order inflows.
Finished longs
The long products market remained mixed. 304 black bar prices declined by INR 1,000/t to INR 186,000/t, reflecting subdued buying from engineering and fabrication sectors. In contrast, 304 bright bar prices increased by INR 3,000/t to INR 213,000/t, supported by comparatively better demand for processed grades.
Export activity remained slow, with market participants reporting almost no fresh sales to the Middle East due to ongoing regional tensions. Offers were revised lower to improve competitiveness, with 304 bright bars assessed at $2,300/t FOB Nhava Sheva, down $100/t w-o-w, while 316 bright bars fell $200/t to $4,000/t FOB.
Global market
Nippon Steel kept its July stainless steel distribution contract prices unchanged after limited movement in alloy surcharges linked to nickel, chromium and foreign exchange rates. The decision reflects stable raw material costs in July, although cumulative price increases over the past year continue to indicate an elevated cost base for producers.
Outlook
India’s stainless steel market is expected to remain under pressure through July as monsoon-related disruptions and weak downstream demand continue to limit buying activity. While mills are likely to maintain promotional discounts to support sales, 316-grade products are expected to remain relatively firm on higher molybdenum costs and tight availability.
Leave a Reply