Stainless steel prices in India have bounced back this week following a period of stability, driven by increases in raw material prices and futures. The uptick has been particularly notable in finished product prices, with 304-grade hot-rolled coils (HRCs) increasing by INR 3,000/t ($37/t) w-o-w to INR 176,000/t ($2,120/t) ex-Mumbai, according to BigMint assessment.
The market in India is grappling with minor material shortage prompting a slight uptick in prices. Demand for 316 series remains steady. Furthermore, prices of raw materials have seen an uptrend due to limited availability.
Currently, 316-grade scrap is priced at around INR 203,000/t ($2,445/t), up INR 3,000/t w-o-w, while 304-grade scrap is at INR 114,000/t ($1,373/t) exw-Delhi.
Imported stainless steel scrap prices have also risen due to improved buyer demand. Imported 316 scrap is now valued at approximately $2,525/t, with 304 scrap priced at $1,345/t, CFR Mundra.
Furthermore, in China, due to ongoing Chinese Lunar New Year holidays the market remained mostly closed this week.
Raw material market
Ferro chrome: Indian ferro chrome prices (HCFeCr60%) stood at INR 117,900/t exw-Jajpur, inched down by INR 900/t w-o-w. Market activities remain largely stable as many participants sought more clarity regarding price trends.
Ferro molybdenum: Indian ferro molybdenum prices witnessed a w-o-w increase of INR 65,000/t. BigMint’s assessment for ferro molybdenum stands at INR 2,390,000/t exw-Nagpur, calculated on a 60% pro rata basis. Market was supported by good demand and the excess stock which was available in domestic market earlier, got sold out which kept prices on the uptrend.
LME nickel: Nickel prices on the London Metal Exchange (LME) increased w-o-w. Three-month nickel futures on the LME up by 2.8% w-o-w and are currently hovering at $16,360/t. Notably, nickel stocks in LME warehouses are at 71,946 t, inched up by 144 t w-o-w.
Outlook
Given current market conditions, it is anticipated that prices may remain rangebound, with the possibility of slight fluctuations.
