- Finished stainless steel prices decrease
- No major buying activity seen post-elections
- Scrap prices remain relatively stable
In India, finished stainless steel prices have dropped this week which can be linked to a decrease in LME nickel prices. Market participants did not absorb the price hike by a major domestic producer. Scrap prices in the domestic and imported market witnessed a slight drop w-o-w. India’s stainless steel (304 series) HRC prices stood at INR 179,000/t ex-Mumbai and domestic 304-grade scrap prices stood at INR 122,000/t ex-works Delhi, BigMint’s assessment reveals.
The drop in finished product prices can be attributed to a notable drop in nickel prices on the LME, falling by $1,815/t w-o-w. At the time of reporting, nickel prices for 3-month delivery on LME fell by 9% reaching $18,675/t, which was previously around $20,000/t. Meanwhile, nickel stocks on LME remained largely stable at 83,514 t.
Scrap market
In the local scrap market, prices for 304 scrap dropped marginally and prices range between INR 121,000-123,000/t ex-Delhi NCR, with cash payment terms. Sources indicate that key mills are acquiring 304 scrap at around INR 124,000-126,000/t DAP, with a credit period of 45 days.
A trader informed BigMint, “Buying activities in the domestic scrap market still remain sluggish despite the drop in prices in the post-election scenario. However, it is anticipated that buying might resume in the coming days as the restrictions in cash flow are expected to ease gradually.”
This week, stainless steel imported scrap prices have remained largely stable with minor declines seen. BigMint’s assessment indicates prices for 304-grade scrap at $1,460-$1,480/t CFR Mundra.
316-grade scrap stands at $2,660/t CFR Mundra, edging down slightly by $10/t w-o-w. Meanwhile, a few suppliers were heard offering 316-grade scrap at $2,700/t levels. However, buyers’ bids were heard in the range of $2,620-$2,630/t.
Offers of SS 304 scrap of Middle East-origin stood at $1,480-$1,500/t, while 316 stood at $2,680-$2,710/t CFR Mundra.
Finished flat segment
As per BigMint’s assessment, 304 HRC witnessed a drop of INR 3,000/t to settle at INR 179,000/t and prices of SS 316 HRC fell by INR 4,500/t to INR 310,000 ex-Mumbai.
According to a buyer source, “There is a prevailing trend of minimal activity in the market driven by downward pressure on demand, primarily influenced by fluctuating LME nickel prices. Buyers are anticipating further downward correction in prices.”
Finished longs: Indicative levels
In the finished longs segment, price indications for 304 black round bars were heard at INR 177,000-INR 179,000/t exw-Delhi. Additionally, price levels for SS 304 bright bars were heard at INR 199,000-INR 201,000/t ex-Delhi.
A longs manufacturer informed BigMint, “Typically, the prices of long products are influenced by scrap prices. Despite a slight decrease in scrap prices, the price levels of long products have remained relatively unaffected.”
Indicative offers for SS 304 hexagon stood at INR 211,000-INR 212,000/t and SS 304 angles are at INR 204,000-INR 205,000/t, both ex-Delhi.
Meanwhile, offers for 316-grade black round bars were heard at INR 289,000-INR 291,000/t ex-Delhi.
China market overview
During the week, China’s domestic stainless steel prices remain largely stable w-o-w. Prices of 304 grade CRC reached RMB 14,700/t ($2,028/t) ex-works. FOB prices of 304 grade CRC stood at $2,117/t.
Raw materials scenario
Ferro molybdenum: Ferro molybdenum prices in India increased by INR 42,000/t ($504/t) w-o-w as against the previous assessment on 29 May. Limited availability of molybdenum oxide at higher prices and good demand supported domestic ferro molybdenum prices.
On 5 June, Indian ferro molybdenum prices were at INR 2,782,000/t ($33,377/t) exw-Nagpur on a 60% pro rata basis.
Ferro chrome: Indian ferro-chrome prices (HC, FeCr60%) stood at INR 106,000/t exw-Jajpur as prices maintained stability amid subdued demand.
Global updates
- Acerinox Malaysia plant suspends operations
Acerinox suspended operations at its Bahru stainless steel plant in Malaysia, considering selling or relocating its production line. Changes in operating conditions were announced for its Barrios plant in Spain, amid ongoing strikes affecting production and financial results.
- LME nickel prices drop
LME nickel prices have declined since mid-May 2024 without any fundamental shifts. This drop is partly attributed to contract changes mid-month, a regular occurrence impacting base metal prices. Additionally, recent LME data shows investors decreasing long positions, likely in anticipation of re-entering the market at opportune levels, reflecting typical profit-taking behavior among investment players rather than consumers.
Outlook
Present market indicators point to a probable steadiness in stainless steel prices, subject to slight variations in the short run. Nonetheless, heightened volatility in LME nickel prices and persistent external economic and political uncertainties contribute to an unpredictable outlook. It is possible that prices may correct lower in the coming weeks.