- Limited domestic availability supports higher import demand
- Higher ferro molybdenum supports 316-grade scrap prices
India’s stainless steel scrap prices increased during the week ended 31 July 2026, supported by higher alloy costs, geopolitical tensions, and a widening bid-offer gap in the market. A stronger US dollar and currency volatility also discouraged fresh import bookings. Market participants noted that limited domestic scrap availability continued to support imports despite elevated prices, as mills sought to secure adequate raw material supplies.
A trader source said, “Domestic scrap availability remains insufficient to meet mill requirements. Despite higher import prices, mills continue to book cargoes to ensure raw material availability.” Another market participant added that export restrictions from certain Middle Eastern countries have disrupted scrap flows, forcing Indian buyers to source material from alternative origins at higher costs.
According to BigMint’s assessment, domestic 304-grade stainless steel scrap prices increased by INR 2,000/t w-o-w to INR 139,000/t DAP Delhi, while 316-grade scrap gained INR 1,000/t to INR 275,000/t DAP Delhi, supported by higher ferro molybdenum prices.
Imported 304-grade nearshore scrap offers increased by $30/t to $1,480/t CFR Mundra, while 316-grade scrap rose by $20/t to $2,860/t CFR Mundra. Meanwhile, 430-grade scrap declined by $20/t to $600/t CFR Mundra, whereas 201-grade scrap edged up by $10/t to $690/t CFR Mundra.
At the time of reporting, LME three-month nickel stood at $17,315/t. On a weekly basis, LME nickel eased 1% to $17,170/t from $17,420/t. Meanwhile, ferro molybdenum (Mo:60%) prices increased by INR 4,000/t to INR 4,275,000/t ex-works, providing additional cost support to 316-grade stainless steel scrap.
China market
China’s stainless steel scrap market remained largely stable during the week, supported by its cost advantage over high-grade nickel pig iron (NPI). Prices for 304-grade stainless steel scrap were steady at RMB 10,400-10,500/t ($1,539-1,544/t) in east China and RMB 10,300-10,600/t ($1,525-1,569/t) in Foshan. Although high-grade NPI prices recovered slightly following month-end procurement by stainless steel mills, the increase was limited, preserving scrap’s cost competitiveness. Expectations of higher stainless steel production in August may support scrap demand; however, weak downstream consumption, narrow mill margins, and limited upside in finished stainless steel prices are expected to keep the scrap market range-bound.
Outlook
India’s stainless steel scrap market is expected to remain volatile in the near term, with participants closely monitoring nickel prices, alloy costs, geopolitical developments, and movements in the US dollar. Demand is likely to improve gradually as mills resume procurement ahead of the festive season. However, limited domestic scrap availability, elevated import costs, and cautious buying are expected to keep the market balanced, with any further price gains largely dependent on raw material trends.
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