- Focus shifting to cost-effective raw materials
- LME nickel prices climb up by 2% w-o-w
India’s imported and domestic stainless steel (SS) scrap prices showed negative trends w-o-w amid moderate trading activity, driven by sufficient inventory levels.
According to BigMint’s assessment, domestic 304-grade SS scrap stood at INR 112,500/tonne (t) ex-Delhi, down INR 1,500/t w-o-w. On the other hand, the imported variant of the same grade, sourced from nearshore regions, was priced at $1,270/t CFR Mundra, stable w-o-w.
LME nickel prices rise w-o-w
Nickel prices on the London Metal Exchange (LME) showed positive movement. The three-month LME nickel price was recorded at $15,485/t, up 2% from last week’s $15,135/t. Nickel stocks in LME-registered warehouses were down by 1% to 204,456 t against the previous week’s 207,282 t.
Market updates
Indian stainless steel scrap market saw limited activity, with trade levels for domestic 304 scrap at INR 112,000-114,000/t and imported 304 material heard at $1,250-1,280/t, based upon quality and payment terms.
Buying activity remained on the lower side due to the monsoon and low finished demand also bid offer disparities were seen in the market, despite the uptick in LME nickel prices.
According to market participants, major mills are actively seeking cheaper alternatives to scrap for cost efficiency.
Additionally, European mills continue to favor competitively priced imported stainless steel slabs, notably from Southeast Asia, over domestic scrap, due to high local energy costs and reliability of imported supply. Spot activity remains sluggish, with the summer holiday period further slowing procurement and keeping scrap yards across Europe well stocked with unsold material.
Notably, stainless steel 304 scrap prices were heard traded at $1,060-1095/t CIF Rotterdam, $1,235-1260/t CIF Japan, $1,255-1280/t CIF South Korea, and $1,190-1215/t in Taiwan. Deals were also heard at $1,260/t from Singapore-origin cargoes.
Additionally, US-origin SS 430 scrap indicative levels were heard at $560-580/t.
BigMint’s daily scrap assessments
- Nearshore-origin SS 316 scrap (loose) stood at $2,475/t, steady w-o-w.
- Nearshore-origin SS 201 scrap (loose) was assessed at $680/t, down by $10/t w-o-w.
- Nearshore-origin SS 430 scrap (loose) was assessed at $590/t, down $10/t w-o-w.
- SS 316 scrap, ex-Delhi, stood at INR 210,000/t, steady w-o-w.
Outlook
Stainless steel scrap prices, both imported and domestic, are likely to remain range-bound amid subdued demand, with buying expected to pick up post-monsoon.
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