The stainless steel market in India is currently going through a phase of limited movement, influenced by lackluster demand and sluggish sales of finished material.
As per SteelMint’s assessment, 304-HRC is currently priced at INR 173,000/t ($2,081/t), while 304-grade CR prices are in the range of INR 184,000/t ($2,214/t) exw-Mumbai, largely stable against last week. Market participants are adopting a cautious stance due to restrained sales of finished materials.
In tandem, the domestic scrap market has inched up, with 316-grade scrap assessed at around INR 200,000/t, whereas the 304-grade scrap prices are at INR 114,000/t exw-Delhi, up INR 1,000/t w-o-w.
Market sources indicated that there was sufficient availability of domestic scrap material.
Offers for 304-grade scrap were at around $1,340-1,350/t CIF Mundra. 316 scrap prices were heard at $2,520-2,525/t CFR Mundra from nearshore origins. However, a significant bid-offer gap has resulted in minimal material movement, as buyers are currently hesitant to book imported cargoes, irrespective of origin.
In China, stainless steel prices have witnessed an uptick, with 304-grade CR prices standing at $2,100-2,105/t FOB China, marking a weekly increase of $5-7/t. Buyers in China are accumulating material ahead of the holiday season, contributing to the price uptick.
Raw material market
- Ferro chrome: Indian ferro chrome prices (HCFeCr60%) increased w-o-w as market players are facing material shortage resulting from ongoing production cuts. According to SteelMint’s assessment, high-carbon ferro chrome (HCFeCr60%) prices stood at INR 117,900/t exw-Jajpur, up INR 5,200/t w-o-w.
- Ferro molybdenum: Indian ferro molybdenum prices witnessed a w-o-w decline of INR 34,000/t as limited demand prompted some market participants to engage in panic sales. SteelMint’s assessment for ferro molybdenum stands at INR 2,314,000/t ($27,834/t) exw-Nagpur, calculated on a 60% pro rata basis.
- LME nickel: Nickel prices on the LME (London Metal Exchange) increased w-o-w. Three-month nickel futures on the LME rose by 1.3% w-o-w and are currently hovering at $16,445/t. Notably, nickel stocks in LME warehouses are at 69,439 t.
Outlook
Looking ahead, market participants anticipate a continued cautious approach in the coming weeks, with demand for finished materials expected to remain subdued.
