- Liquidity concerns drive stainless steel scrap down
- The Philippines planning raw mineral export ban
India’s imported and domestic stainless steel (SS) scrap prices declined w-o-w due to weak demand for finished steel. Although LME nickel prices saw a slight increase for the week, imported scrap prices remained on the lower side. Market activity overall remained subdued, with buying driven by specific needs.
As per BigMint’s assessment, domestic 304-grade SS scrap stood at INR 117,500/t ex-Delhi, while the imported variant of the same, originating from nearshore regions, was priced at $1,260/t CFR Mundra, down $30/t w-o-w.
LME nickel prices dip w-o-w
At the time of reporting, three-month LME nickel prices stood at $15,775/t, reflecting a 3% increase from last week’s $15,385/t. Meanwhile, nickel stocks in LME-registered warehouses stood at 173,562 t, up 1% from the previous week’s 172,302 t.
As per sources, the Philippine Congress may soon ratify a bill to ban the export of raw minerals, including nickel, in a bid to foster the country’s own processing industry. The bill, expected to be passed as early as June, aims to establish a domestic mineral processing sector within five years.
As the world’s second-largest supplier of nickel ore, the Philippines currently exports much of its supply, predominantly to China. The government hopes to shift this model by encouraging mining companies to invest in local processing plants, inspired by the success of Indonesia, the top global nickel supplier, in increasing mining revenues.
BigMint’s daily assessments
Nearshore-origin SS 316 scrap (loose) was at $2,460/t, down by $30/t w-o-w.
Nearshore-origin SS 201 scrap (loose) was at $680/t, down by $10/t w-o-w.
Nearshore-origin SS 430 scrap (loose) was at $580/t, down by $20/t w-o-w.
SS 316 scrap, ex-Delhi stood at INR 217,000/t, unchanged w-o-w.
Market scenario
Suppliers offered SS 304 scrap at $1,260-1,270/t, with workable levels ranging from $1,250 to $1,255/t, CFR west coast, India. Despite the rise in LME nickel prices following the news of Indonesia’s mining quota and the Philippines’ plan to ban raw material exports, the market did not reflect this increase in scrap offer levels. This was due to weak demand in the finished goods sector and ongoing liquidity concerns.
Meanwhile, SS 316 scrap offers were heard at $2,460-2,470/t, and bids were observed at $2,430-2,450/t, CFR Mundra. However, the inquiries for SS 316 grade scrap remained on the lower side.
A trader source informed BigMint, “The anticipated boost in demand following FY’26 Budget did not materialize for finished materials, which has led to a continued decline in scrap procurement. As a result, scrap purchases have largely been need-based, with major mills importing scrap only as required.”
In week 6 of 2025, BigMint observed trades for around 200-300 t of 304 scrap at around $1,250/t. Additionally, trades for around 100-200 t were heard for SS 201 scrap originating from Middle East at $680/t CFR Mundra.
In the domestic market, trade activities remained low to moderate, with small-volume deals heard at around INR 117,000-119,000/t ex-Delhi for SS 304 scrap.
Other updates
India’s adoption of electric vehicles (EVs) is expected to grow significantly, with EV sales projected to reach 30-35% of annual vehicle sales by FY’30. This shift presents a major opportunity for the stainless steel industry, especially for applications in EV batteries, charging infrastructure, and thermal management systems. As India moves towards domestic battery production, driven by initiatives like the PLI scheme, demand for specialised stainless steel grades is anticipated to rise. This growth will particularly impact the automotive, railway, and transport sectors.
Outlook
Stainless steel scrap prices are expected to stay range-bound in the near term. However, buying activity is likely to see a slight uptick as demand for finished stainless steel products is anticipated to pick up in the coming months.
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