- Export market remains firm despite subdued overseas demand
- Europe activity expected to resume after holidays
India’s stainless steel bright bar export market continued to remain firm in the week ended 1 September, with overall sentiment remaining largely stable. Overseas buying interest was still subdued due to geopolitical tensions, trade uncertainties, high freight costs and evolving CBAM requirements. Nevertheless, weak domestic demand, limited scrap availability and elevated alloy costs continued to underpin export prices.
European market activity remained subdued as buyers continued to remain away due to summer holidays. Market participants expect European enquiries to gradually resume from next week, which could provide some improvement in export activity.
EU stainless steel imports face increasing pressure from a 50% over-quota tariff, while country-specific quotas determine access to lower-tariff volumes. The quota system is based on each origin’s 2022-2024 import share and separates suppliers into MFN and FTA tracks, with FTA suppliers generally having greater flexibility through access to residual quotas after exhausting their country-specific allocation. From 1 October, the new melt-and-pour disclosure requirement will add another layer of origin verification.
The Dubai market remained slow, with limited buying interest reported during the week. Meanwhile, market participants noted that Turkiye’s domestic consumption of stainless steel long products has improved, providing some support to regional demand.
Tight availability of stainless steel scrap continued to influence finished-product pricing. A market participant noted that constrained scrap supply has increased production costs and supported finished stainless steel prices.
Indicative export offers for 304 bright bars were heard at around $2,350-2,375/t FOB India, while 316 bright bars were offered at around $4,300-4,350/t FOB India.
BigMint’s assessment on 1 September placed 304 bright bars at $2,350/t up by $50/t FOB Nhava Sheva and 316 bright bars at $4,300/t FOB Nhava Sheva.
Outlook
India’s bright bar export market is expected to remain firm but range-bound in the near term. A potential revival in European enquiries next week could provide some support, while slow buying from Dubai may continue to limit overall export momentum. Tight scrap availability and firm domestic consumption are likely to keep sellers’ price expectations elevated.
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