India: Stainless steel scrap market remains subdued; mills delay purchases amid ample inventories

• Weak finished demand, low casting activity weigh on prices
• LME nickel prices decline by 3% w-o-w as inventories edge up

India’s stainless steel scrap market remained subdued this week, as weak finished product demand and low casting activity kept mills away from fresh bookings. Buying interest was muted, with most producers carrying sufficient inventories and several major players halting purchases altogether.

Market sentiment was pessimistic, with participants highlighting difficulties in concluding deals and limited movement in nickel pig iron as well. Overall, activity was dull, marked by limited inquiries and cautious purchasing. Expectations are that December will remain soft if current conditions persist.

Domestic 304-grade scrap was assessed by BigMint at INR 107,000/t ex-Delhi, down INR 2,000/t w-o-w, while imported 304-grade scrap from nearshore origins held steady at $1,230/t CFR Mundra.

BigMint’s scrap assessments

• Nearshore-origin SS 316 scrap (loose): $2,475/t, down $5/t w-o-w.
• Nearshore-origin SS 201 scrap (loose): $610/t, steady w-o-w.
• Nearshore-origin SS 430 scrap (loose): $560/t, steady w-o-w.
• SS 316 scrap ex-Delhi: INR 2108000/t, down by INR 2,000/t w-o-w.
• SS utensil ex-Delhi: INR 60,000/t, steady w-o-w.

LME nickel

Nickel prices on the London Metal Exchange (LME) dropped slightly, with the three-month contract at $14,355/t, down by 3% versus $14,810/t last week. LME-registered nickel stocks stood at 254,172 t, up by 1% against 253,104 t in the previous week.

Outlook

Market sentiment remains cautious, with scrap trading expected to stay muted unless demand strengthens. Price movements are likely to remain range-bound in the near term amid subdued finished stainless steel demand.