India: Stainless steel imported and domestic scrap prices see upward trend w-o-w

• Finished stainless steel prices rise on firm exchange rates
• LME nickel dip 1% w-o-w to $15,272/t

India’s domestic and imported stainless steel (SS) scrap prices firmed this week, driven by stronger mill buying and steady finished steel demand, with rising raw material costs further fuelling the uptrend.

BigMint assessed domestic 304-grade scrap at INR 114,000/tonne (t) ex-Delhi, steady w-o-w, while the imported 304-grade from nearshore origins remained stable at $1,290/t CFR Mundra, up by $10/t.

As per a source at a major mill,” Finished stainless steel prices are trending upward as firm exchange rates drive cost pressures. Given the sector’s reliance on imported raw materials, the rise in input costs is gradually being passed on to finished products, reinforcing the upward momentum in the domestic market.”

The domestic scrap market is facing tight availability as indigenous supply remains limited. Sellers are booking cautiously ahead of the festive season, keeping trade volumes subdued. Foundry producers, offering stronger bids, are absorbing most of the available scrap, further constraining supply to mills and adding upward pressure on prices, trader stated.

A market participant said, “Market stayed positive, with major mills raising bids to around $1,270-1,280 for 304-grade material. However, South Korea is offering higher realizations near $1,360, prompting diversion of cargoes. Meanwhile, Taiwan’s market has also firmed, though levels remain below India, keeping regional competition in focus”.

LME nickel remains rangebound

Nickel prices on the London Metal Exchange (LME) dipped 1% on the week, with the three-month contract at $15,272/t versus $15,365/t last week. LME-registered nickel stocks rose 2% to 228,450 t from 215,310 t.

BigMint’s scrap assessments

• Nearshore-origin SS 316 scrap (loose): $2,500/t, up $10/t w-o-w.
• Nearshore-origin SS 201 scrap (loose): $660/t, steady w-o-w.
• Nearshore-origin SS 430 scrap (loose): $600/t, up $10/t w-o-w.
• SS 316 scrap ex-Delhi: INR 216,000/t, steady w-o-w.
• SS utensil ex-Delhi: INR 59,00/t, up INR 500/t w-o-w.

Outlook

Stainless steel scrap prices are likely to remain supported as firm nickel and chrome costs enhance scrap’s competitiveness as a key alternative raw material. However, with suppliers expected to offload inventories ahead of the winter holidays, near-term buying sentiment remains cautious, although overall market sentiment stays positive.