- Export sentiment remains largely unchanged from last week
- Domestic demand, tight scrap availability supports prices
India’s stainless steel bright bar export market remained subdued in the week ended 18 August, with market sentiment largely unchanged from the previous week. Overseas buying remained cautious amid geopolitical tensions, trade uncertainties, higher freight costs and evolving CBAM requirements. However, firm domestic demand, tight scrap availability, and elevated alloy costs continued to support price levels.
Export market remains subdued
Market participants reported limited overseas buying interest, with geopolitical uncertainties and higher freight costs continuing to affect export enquiries. European buyers also remained cautious amid evolving CBAM-related requirements.
Indicative export offers for 304 bright bars were heard at around $2,300-2,350/t FOB India, while 316 bright bars were offered at around $4,150-4,250/t FOB India.
BigMint’s assessment on 18 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 demand supports prices
The domestic bright bar market remained firm, supported by healthy downstream buying and elevated raw material costs. Market participants reported continued enquiries from mills and downstream buyers ahead of the festive season, partly offsetting weak export demand.
BigMint’s 12 August assessment placed 304 bright bars at INR 195,000/t exw-Mumbai, down INR 3,000/t w-o-w, while 316 bright bars increased by INR 5,000/t to INR 375,000/t exw-Mumbai.
Scrap availability remains tight
Scrap availability remained tight as buyers continued actively looking for material. Import activity remained subdued amid higher freight rates and container shortages, increasing dependence on domestic scrap.
BigMint’s assessment showed domestic 304-grade stainless steel scrap prices at INR 143,000/t DAP Delhi, unchanged w-o-w.
The tight availability of scrap continues to provide underlying support to domestic stainless steel prices, although downstream buying remains selective.
Outlook
The bright bar market is expected to remain firm but range-bound in the near term, with sentiment broadly similar to the previous week. Healthy domestic demand, tight scrap availability and elevated alloy costs are likely to limit downside pressure.
However, subdued overseas enquiries, geopolitical uncertainties and higher freight costs could continue restricting export activity. Market participants will closely monitor nickel prices, festive-season demand, scrap availability and developments around European trade regulations.
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