India: Stainless steel prices remain under pressure as buyers stay cautious amid nickel weakness

• LME nickel falls 5% w-o-w, weighing on market sentiment
• 316 scrap prices remain firm amid limited availability

India’s stainless steel market remained under pressure in the week ended 26 June 2026, as weak finished steel demand and continued volatility in nickel prices kept buyers on the sidelines. Trading activity was limited across the value chain, with mills and traders adopting a cautious approach and most procurement restricted to immediate requirements rather than inventory replenishment.

Buying activity remained largely need-based throughout the week, reflecting subdued downstream demand and uncertainty over near-term price direction. Although overall market sentiment was weak, the tight availability of 316-grade stainless steel scrap continued to support higher offer levels in both the domestic and imported markets.

In the domestic market, BigMint’s benchmark 304-grade stainless steel scrap price declined by INR 3,000/t w-o-w to INR 142,000/t DAP Delhi, reflecting weak buying sentiment and softer finished steel prices.

In the import market, indicative offers for 304-grade stainless steel scrap were at $1,510-1,520/t.

According to BigMint’s assessment, imported 304-grade stainless steel scrap dropped by $10/t w-o-w at $1,520/t CFR Nhava Sheva, while imported 316-grade scrap prices were steady at $2,950/t CFR India.

Global market sentiments

Globally, European suppliers maintained firm offer levels, backed by healthy regional demand and stable domestic market conditions. Meanwhile, Southeast Asia continued to be the primary source of imported stainless steel scrap for Indian buyers, ensuring relatively stable cargo availability across mainstream grades despite cautious purchasing.

Indicative prices for 304-grade stainless steel scrap were reported at $1,460-1,465/t CIF Rotterdam. In Asia, offers stood at $1,385-1,390/t CIF Japan, $1,390-1,395/t CIF South Korea, and $1,340-1,350/t CIF Taiwan.

In China, stainless steel scrap prices declined w-o-w amid weaker stainless steel futures, softer SHFE nickel prices, and lower high-grade nickel pig iron (NPI) values. Prices of 304 stainless steel scrap off-cuts in Foshan were reported at RMB 10,350-10,650/t.

Despite the correction, scrap retained its cost advantage over NPI. The estimated production cost using 100% stainless steel scrap stood at RMB 14,640.79/t, compared with RMB 15,072.29/t using high-grade NPI. However, seasonal weakness in demand, cautious market sentiment, and production cuts at Chinese stainless steel mills continued to limit scrap consumption.

LME nickel remains bearish w-o-w

LME three-month nickel prices declined by 5% w-o-w to $16,820/t from $17,780/t a week earlier. LME nickel inventories also eased to 274,830 t, compared with 276,216 t in the previous week, although the inventory decline was insufficient to offset the bearish sentiment created by weaker prices.

Outlook

India’s stainless steel market is expected to remain subdued through the coming week, with buyers likely to continue hand-to-mouth procurement until demand from downstream consumers improves. While tight availability of 316-grade scrap is expected to support premiums for higher-grade material, movements in LME nickel and recovery in finished stainless steel demand will remain the key indicators for market direction.