Finished prices strengthened on firm raw material costs.
Tight scrap supply continued challenging mill procurement.
India’s stainless steel bright bar export market remained subdued in the week ended 25 August, with market sentiment broadly unchanged from the previous week. Overseas buying interest remained limited amid geopolitical tensions, trade uncertainties, elevated freight costs and evolving CBAM requirements. However, firm domestic demand, tight scrap availability and elevated alloy costs continued to provide support to prices. Meanwhile, buying activity from the Middle East remained limited amid ongoing geopolitical tensions, while European market activity was muted due to summer holidays.
Export market remains subdued
Export enquiries remained limited during the week as overseas buyers continued to adopt a cautious approach. Geopolitical uncertainties and higher freight costs continued to weigh on buying interest, while European buyers remained cautious amid evolving CBAM-related requirements.
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 $4,320-4,340/t FOB India.
BigMint’s assessment on 25 August placed 304 bright bars at $2,350/t FOB Nhava Sheva and 316 bright bars at $4,150/t, with both grades remaining unchanged w-o-w.
Domestic longs market
Domestic finished longs market also remained firm, with enquiries gradually improving ahead of the festive season. However, tight scrap availability continued to pose a challenge for mills.
BigMint’s benchmark assessment for 304 black bars remained steady w-o-w at INR 195,000/t exw-Mumbai, while 316 black bars increased by INR 2,000/t to INR 352,000/t exw-Mumbai.
Tight scrap availability supports prices
The stainless steel scrap market remained firm during the week amid tight availability, elevated alloy costs and volatile nickel prices. Limited scrap availability continued to support domestic raw material costs, providing a floor to bright bar prices despite weak export demand.
BigMint’s assessment showed domestic 304-grade stainless steel scrap prices at INR 147,000/t DAP Delhi, up INR 4,000/t w-o-w.
Outlook
The stainless steel bright bar market is expected to remain firm but range-bound in the near term, with market sentiment likely to remain broadly similar to the previous week. Healthy domestic demand, tight scrap availability and elevated alloy costs are expected to limit downside pressure.
However, subdued overseas enquiries, geopolitical uncertainties, higher freight costs and muted activity in key export markets could continue to restrict export volumes. Market participants are expected to closely monitor nickel prices, festive-season demand, scrap availability and developments in European trade regulations for further price direction.
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