- Tight scrap supply, elevated alloy costs continue to support prices
- European buying interest remains subdued amid summer holidays
India’s stainless steel bright bar export market remained largely stable in the assessment week ended 08 September, with market sentiment broadly unchanged from previous weeks. Overseas buying interest continued to remain subdued amid geopolitical tensions, trade uncertainties, elevated freight costs, and evolving CBAM requirements. However, limited scrap availability and elevated alloy costs continued to provide support to sellers’ price expectations, keeping export offers largely stable.
Activity in the European market remained subdued as buyers continued to stay away amid the ongoing summer holiday period. Market participants expect enquiries from the region to gradually resume from next week, which could provide some improvement in export activity.
Indicative export offers for 304 bright bars were heard at around $2,370-2,390/t FOB India, while 316 bright bars were offered at around $4,300-4,350/t FOB India.
BigMint’s assessment on 08 September placed 304 bright bars at $2,370/t FOB Nhava Sheva and 316 bright bars at $4,320/t FOB Nhava Sheva, with prices largely stable compared with the previous week.
Domestic longs market
The domestic stainless steel longs market also remained broadly stable, although trading activity was limited amid subdued demand and elevated raw material costs. Mills continued to face tight availability of stainless steel scrap, keeping replacement costs elevated and limiting scope for downward price revisions.
BigMint’s benchmark assessment on 02 September placed 304 black bars at INR 200,000/t exw-Mumbai, up by INR 2,000/t w-o-w, while 316 black bars increased by INR 5,000/t to INR 363,000/t exw-Mumbai.
Scrap availability remains tight
Tight scrap availability remained a key factor supporting finished stainless steel prices. Market participants noted that constrained scrap supply has increased production costs, thereby keeping mill offers firm despite limited buying interest.
BigMint’s assessment for 304-grade stainless steel scrap stood at INR 151,000/t DAP Delhi on 08 September, up by INR 2,000/t w-o-w.
Outlook
India’s stainless steel bright bar export market is expected to remain stable in the near term, with overall sentiment likely to remain similar to recent weeks. A gradual revival in European enquiries following the holiday period could provide some support to export activity, although subdued buying from the UAE and broader trade uncertainties may continue to limit momentum. Meanwhile, tight scrap availability and elevated alloy costs are expected to keep sellers’ price expectations supported, limiting the scope for significant price corrections.
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