- Imports slow down amid higher freights, container shortages
- Higher ferro molybdenum costs, steady demand support prices
India’s stainless steel scrap market remained firm in the week ended 14 August 2026, supported by tight scrap availability, higher ferro molybdenum costs, and elevated domestic demand. However, weaker nickel prices and uncertainty surrounding Indonesia’s nickel ore quota kept market participants cautious.
Scrap availability remains tight
Scrap availability remained tight as buyers were actively looking for material. Import activity remained subdued amid higher freight rates and container shortages, increasing buyers’ dependence on domestic scrap.
According to BigMint’s assessment, domestic 304-grade stainless steel scrap prices increased by INR 4,000/t w-o-w to INR 143,000/t DAP Delhi. Imported 304 scrap prices also increased by $50/t w-o-w to $1,520/t CFR Mundra, despite weaker nickel prices.
Rising scrap costs and tight availability have also supported domestic finished stainless steel prices. The finished longs market remained subdued amid limited scrap availability, a mill source noted.
316 scrap prices rise on tight supply
The 316 scrap market remained tight amid higher molybdenum costs and limited availability in both domestic and international markets.
BigMint’s assessment showed domestic 316-grade scrap prices increased by INR 2,000/t w-o-w to INR 278,000/t DAP Delhi, while imported 316 scrap prices rose by $40/t w-o-w to $2,920/t CFR Mundra.
Indonesia quota uncertainty keeps buyers cautious
Market participants remained cautious amid volatile nickel prices and uncertainty surrounding Indonesia’s nickel ore quota. Indonesia has set the 2026 nickel ore mining quota (RKAB) at 270 million wmt, along with a 30 million wmt strategic buffer, implying a potential total allocation of 300 million wmt.
The proposal aims to address rising raw-material requirements from Indonesia’s expanding smelting capacity. At full capacity, around 80 smelters would require an estimated 315 million wmt of nickel ore annually, highlighting a potential supply gap under the current quota.
China market sentiment remains bearish
China’s stainless steel scrap market remained under pressure this week as weaker stainless steel futures and declining finished steel prices weighed on sentiment. High-grade NPI prices also retreated, narrowing the cost advantage of stainless steel scrap and weakening price support. Meanwhile, sluggish off-season demand, cautious mill purchasing, and narrowing margins limited buying interest despite expectations of higher production. Stable inventories and firm raw material costs provided some downside support, but overall sentiment remained weak.
In China, 304 stainless steel scrap prices in Shanghai remained stable w-o-w at RMB 10,450/t ($1,543/t).
Outlook
Indian stainless steel scrap prices are expected to remain firm but volatile in the near term. Tight domestic availability and elevated ferro molybdenum costs are likely to support prices, while weaker nickel prices could limit upside. Market participants will closely monitor Indonesia’s nickel ore quota developments, alloy costs, import availability and downstream stainless steel demand.
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