India: Leading stainless steel producer raises coil prices amid higher alloy costs

• Higher alloy costs supported the latest price hike
• Nickel volatility raised concerns over Indonesia supply

A leading Indian stainless steel producer has increased domestic prices of hot-rolled (HR) and cold-rolled (CR) stainless steel coils, effective 10 August, marking its first price revision this month. Market participants attributed the increase to higher input costs, particularly ferro molybdenum, alongside volatile nickel prices and uncertainty surrounding Indonesia’s revised nickel mining quotas.

Price hikes across grades

The producer raised prices as follows:

304 HR/CR: INR 2,000/t

316L HR/CR: INR 3,000/t

JT HR: INR 1,500/t

JT CR: INR 1,000/t

J4: INR 1,000/t

Higher alloy costs support price hike

Higher molybdenum costs have emerged as a key factor supporting the latest price revision. BigMint assessed ferro molybdenum (FeMo 60%) at INR 4,334,000/t ex-Raipur, up 2% w-o-w from INR 4,237,500/t, with prices rising on higher molybdenum oxide costs and firmer global prices.

Meanwhile, nickel prices remained volatile amid uncertainty over Indonesia’s revised nickel mining quotas. LME nickel stood at $17,004/t at the time of reporting, compared with an opening price of $17,050/t on 3 August.

Demand remains supportive

Market participants said the latest price increase was also supported by healthy demand, with the producer reportedly revoking discounts on some products amid improved buying interest.

However, availability remains tight for certain grades and products, with shortages reported for some materials in the domestic market. Limited availability has provided additional support to producer offers.

Imports remain subdued

Market participants noted that stainless steel imports have remained relatively low, as domestic material is currently more competitively priced than imported alternatives. This has encouraged buyers to source locally, particularly where domestic availability is sufficient.

BigMint’s latest assessment on 5 August placed 304 HR coils at INR 218,000/t and 316 HR coils at INR 412,000/t.

Global market remains weak

China’s stainless steel market remained weak, with subdued demand and lower stainless steel and nickel prices weighing on market sentiment. 304 2mm cold-rolled coils were assessed at around RMB 15,500/t ($2,291/t) exw-Foshan.

Meanwhile, Indonesia’s Qingshan raised its 304 stainless steel export price by $30/t, despite weak market conditions in China. However, Indonesian material remains competitively priced compared with Chinese domestic offers, limiting the impact of the increase on regional trade flows.

Outlook

The combination of higher alloy costs, healthy domestic demand, tight availability of certain grades and subdued imports has strengthened the producer’s pricing position. However, downstream buying activity, nickel price movements and developments in Indonesia’s nickel mining quotas will remain key factors influencing domestic stainless steel prices in the near term.