Domestic stainless steel prices in India continued with the declining trend this week too. Prices of 304-grade hot-rolled coils (HRCs) fell by INR 5,000/tonne ($60/t) w-o-w to INR 210,000/t ($2,555/t) exw, while domestic 304-grade scrap prices remained stable w-o-w at INR 128,000/t ($1,548/t) ex-Delhi.
The three-month nickel futures on the London Metal Exchange (LME) also improved by around 7% m-o-m and are hovering at around $24,000/t. Meanwhile, ferro molybdenum prices corrected by around 8% w-o-w. Notably, nickel and ferro molybdenum are the key raw materials used in stainless steel production.
Market overview
As per recent trade data, imported scrap prices into the country improved in the range of $1,550-1,570/t while Chinese mills were bidding at $1,490-$1,500/t for 304-grade. The 316 scrap was heard in the range of $2,920-2,950/t. Demand for stainless steel scrap remained stable.
Meanwhile, prices in the finished stainless steel segment fell sharply, with HRC/CRC 304-grade falling by INR 5,000/t w-o-w. A Mumbai-based seller said: “Prices are under stress. We can expect recovery in mid-April.”
Ferro alloy prices down w-o-w
Indian ferro chrome (HC60%) prices decreased by INR 4,400/t w-o-w to INR 111,400/t exw-Jajpur due to weak demand in both the local and international markets.
Meanwhile, domestic ferro molybdenum prices fell 8% w-o-w. Prices of FeMo 60% material stood at INR 34,50,000/t ($42,090/t).
Outlook
Overall, domestic stainless steel demand was subdued this week. Market participants are expecting demand to recover in mid-April.
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