- 304 scrap faces pressure from lower nickel prices
- Higher molybdenum costs support 316 scrap
India’s stainless steel scrap market remained firm in the week ended 7 August 2026, supported by higher ferro molybdenum prices, tight domestic availability and geopolitical uncertainties. However, weaker nickel prices weighed on 304-grade scrap, while expectations of higher Indonesian nickel ore supply kept market participants cautious.
Nickel prices fall on Indonesia supply surge
Nickel prices declined to their lowest level since mid-July amid renewed speculation that Indonesia could raise its nickel ore production quota for one of its major mines. Expectations of higher supply created a bearish undertone in the market, although participants largely remained in a wait-and-watch mode.
LME three-month nickel was assessed at around $16,940/t at the time of reporting. On a weekly basis, LME nickel declined 3% to $16,775/t from $17,335/t.
304 scrap prices ease
According to BigMint’s assessment, domestic 304-grade stainless steel scrap prices remained stable w-o-w at INR 139,000/t DAP Delhi. Imported 304 scrap prices declined by $10/t w-o-w to $1,470/t CFR Mundra, reflecting weaker nickel prices.
Market participants remained cautious amid declining nickel prices and relatively firm import offers. Tight domestic availability encouraged some mills to increase their preference for imported material. However, bid-offer disparities persisted, with domestic material remaining more competitive than imports in some cases.
316 scrap gains on higher molybdenum costs
Domestic 316-grade scrap prices increased by INR 1,000/t w-o-w to INR 276,000/t DAP Delhi. Imported 316 scrap prices rose by $20/t w-o-w to $2,880/t CFR Mundra.
The relatively firm domestic 316 market was supported by higher ferro molybdenum costs, which increased replacement costs and supported seller price expectations.
Meanwhile, 430-grade scrap prices increased by $20/t w-o-w to $620/t CFR Mundra, while 201-grade scrap prices edged up by $20/t to $720/t CFR Mundra.
Ferro molybdenum prices rise
BigMint assessed ferro molybdenum prices at INR 4,334,000/t ($64,303/t) exw India, up INR 59,000/t w-o-w. The increase followed higher molybdenum oxide costs and firmer global molybdenum prices, providing additional cost support to 316-grade stainless steel scrap.
Global scrap market remains range-bound
In China, 304 stainless steel scrap prices in East China remained stable at RMB 10,400-10,500/t ($1,543-1,558/t), while Foshan prices eased slightly to RMB 10,200-10,500/t ($1,513-1,558/t).
Despite volatility in stainless steel futures and uncertainty surrounding Indonesian nickel supply, Chinese scrap prices remained relatively resilient due to their cost advantage over high-grade NPI. However, weak downstream demand during the seasonal off-season and limited mill margins are likely to restrict significant price gains.
In Thailand, domestic stainless steel scrap offers were heard at $1,420-1,430/t exw, according to a trader source.
Outlook
Indian stainless steel scrap prices are expected to remain firm but volatile in the near term. Lower nickel prices may continue to weigh on 304 scrap, while tight domestic availability and elevated ferro molybdenum costs are likely to provide downside support. Market participants are expected to closely monitor developments around Indonesia’s nickel ore production quotas, movements in alloy costs and the recovery in downstream stainless steel demand.
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