India: Stainless steel market remains firm amid supply disruptions; demand stays weak

• Bookings remain need-based as buyers stay cautious
• Longs segment weak despite marginal price increases

India’s stainless steel market remained firm during the week, supported by ongoing supply disruptions and rising logistics costs amid geopolitical tensions. However, domestic demand continued to lag, with liquidity constraints persisting across the value chain. While inquiries were seen, actual bookings remained largely need-based, reflecting cautious sentiment among buyers.

Finished flats prices surge

BigMint’s benchmark 304 HRC was assessed at INR 216,000/t ex-Mumbai, up INR 11,000/t w-o-w, while 316 HRC increased by INR 10,000/t w-o-w to INR 370,000/t.

One of India’s leading stainless steel producers has announced a fresh price hike for coils effective 17 March, marking the second increase in the month amid supply disruptions, rising logistics costs, and ongoing geopolitical tensions impacting gas availability. Prices for 304/304L (HR & CR) coils were increased by INR 5,000/t, 316/316L by INR 10,000/t, while 200 and 400 series coils saw a rise of INR 3,000/t.

Market participants noted that trading activity remained subdued, with delayed imports and shipment uncertainties due to ongoing geopolitical developments.

On the global front, Indonesia’s Tsingshan has raised 304 stainless steel export prices by $50/t, pushing up procurement costs for hot-rolled coils, while tight scrap availability continues to support raw material prices despite weak downstream demand.

Finished longs segment remains weak

In the longs segment, 304L (25-100 mm) black round bars were assessed at INR 170,000/t ex-Mumbai, up INR 2,000/t w-o-w. Meanwhile, 316L black round bars increased by INR 10,000/t to INR 310,000/t ex-Mumbai, supported by higher alloy input costs.

Despite the price rise, buying interest remained limited, with only small-volume transactions reported as buyers stayed cautious amid elevated price levels.

Export activity remained muted, with no significant fresh bookings reported from major mills. Suppliers continued to adopt a wait-and-watch approach amid ongoing global uncertainty and volatile freight conditions.

Raw material scenario

Outlook

India’s stainless steel market is expected to remain supported in the near term if geopolitical tensions persist. Continued supply disruptions, elevated freight costs, and energy constraints may keep availability tight, while weak demand and liquidity challenges could limit aggressive buying activity.