- SS scrap prices rise despite weak demand
- Market activity to remain slow ahead of Holi, FY closing
India’s domestic and imported stainless steel (SS) scrap prices saw an increase w-o-w amid increasing LME nickel prices. In the domestic scrap segment prices saw an increase up to INR 500/t, while in the imported segment the prices gained up to $20/t.
As per BigMint’s assessment, domestic 304-grade SS scrap stood at INR 115,500/t ex-Delhi, while the imported variant of the same, originating from nearshore regions, was priced at $1,280/t CFR Mundra, up $15/t w-o-w.
LME nickel prices rise w-o-w
At the time of reporting, three-month LME nickel prices stood at $16,400/t, up 1% from last week’s $16,340/t. Meanwhile, nickel stocks in LME-registered warehouses stood at 199,686 t, largely stable from the previous week’s 199,410 t.
Nickel ore and ferro nickel prices increased, stainless steel futures strengthened, and a decline in LME nickel inventories supported nickel prices. Market participants expect that short-term nickel prices will follow a fluctuating trend.
BigMint’s daily assessments
- Nearshore-origin SS 316 scrap (loose) was at $2,480/t, up $20/t w-o-w.
- Nearshore-origin SS 201 scrap (loose) was at $690/t, steady w-o-w.
- Nearshore-origin SS 430 scrap (loose) was at $590/t, steady w-o-w.
- SS 316 scrap, ex-Delhi stood at INR 214,000/t, up INR 500/t w-o-w.
Market scenario
Stainless steel scrap prices in the domestic market rose following a price hike for finished SS coils by a major manufacturer. This increase in finished material prices was driven by rising nickel costs.
Moreover, major domestic mills raised their scrap buying prices, with SS 304 priced at INR 118,000/t and SS 316 at INR 216,500/t, both with a 45-day payment term.
The transactional activities in the domestic market remain low to moderate with small quantities being traded.
In the imported scrap market, the offer levels increased, with SS 304 scrap originating from nearshore regions being offered at $1,300-1,320/t, and the bids were assessed between $1,270-1,280/t. Offers for SS 316 were heard at $2,500-2,520/t and bids are at $2,470-2,480/t CFR Mundra.
A market participant stated, “Despite the rise in scrap prices, demand remained subdued due to weak conditions in the finished segment, with buying activity limited to essential needs only.”
A few deals were heard concluded between $1,280-90/t CFR Mundra for SS 304 grade scrap from the Middle East.
Additionally, SS 430 and SS 201 scrap were priced at $590/t and $690/t CFR Mundra. In the beginning of the week, a deal for 100 t of SS 430 scrap was heard at $585/t CFR Mundra.
A trader source mentioned, “Market activity is expected to remain sluggish due to the upcoming Holi festival and the financial year-end, which typically leads to weaker buying activity.”
Outlook
In the short term, market activity is expected to remain slow due to the upcoming Holi festival, with subdued demand in the finished segment, according to market sources.
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