- Holiday-led slowdown limits trading activity
- Rising molybdenum prices add cost pressure
India’s stainless steel prices remained largely rangebound this week as market activity slowed during the Holi festival, with most participants adopting a holiday mood and deferring purchases. Limited trading kept spot prices steady, although market sentiment is turning cautiously bullish for the coming week.
Festive lull caps market movement
Trading volumes were thin as buyers stayed away from the market during the festive period. BigMint’s benchmark 304 HRC stood at INR 195,000/t ex-Mumbai, while 316 HRC remained steady at INR 348,000/t, both unchanged week-on-week.
In the longs segment, 304L (25-100 mm) black round bars were assessed at INR 166,000/t ex-Mumbai, up INR 1,000/t w-o-w. Meanwhile, 316L black round bars increased by INR 5,000/t to INR 295,000/t ex-Mumbai, supported by higher alloy input costs.
War tensions, import uncertainty may push up prices
Market participants expect stainless steel prices to rise next week as escalating global war tensions and geopolitical uncertainties begin to impact supply chains and logistics.
A market participant said prices could move upward amid tightening market conditions. Container shortages and the strengthening US dollar are increasing supply chain costs. The participant added that if the ongoing conflict continues for another few days, it could lead to shortages of petrol and gas, potentially forcing production cuts in several sectors.
At the same time, uncertainty persists in the import market regarding shipment timelines and arrivals. Current import offers are heard at around $2,140-2,150/t for 304 CR and $3,860-3,870/t for 316 CR.
Another trader noted that a leading stainless steel producer has reportedly closed bookings, which could lead to short-term supply tightness. Imports are also not being booked actively due to geopolitical risks.
Molybdenum surge raises production costs
Indian ferro molybdenum (Mo 60%, 10-100 mm) prices increased during the week, supported by firm global trends and higher upstream costs. According to BigMint’s assessment on 6 March, prices stood at INR 3,514,000/t exw-India, up INR 64,000/t w-o-w. Around 40 t of deals were reported during the week at INR 3,540,000-3,550,000/t exw India.
Nickel market update
Three-month nickel prices on the London Metal Exchange closed at $17,320/t on 5 March, down around 3% w-o-w from $17,890/t on 27 February. LME-registered nickel stocks were reported at 287,550 t, slightly lower than 287,976 t in the previous week.
Outlook
India’s stainless steel prices are expected to remain stable to firm in the near term. While domestic demand is currently subdued, rising alloy costs, restricted imports, and growing concerns over global war tensions disrupting supply chains could push prices higher once trading activity resumes after the festive slowdown.
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