- Supply disruptions, freight costs support firm scrap prices
- Global cues positive, inventories cap upside momentum
India’s stainless steel scrap market showed mixed trends in the week ended 27 March, with prices stable or slightly higher amid supply disruptions linked to geopolitical tensions and rising freight costs. Market participants limited import bookings, reflecting cautious sentiment and uncertain supply conditions.
Global cues support sentiment
Globally, stainless steel scrap prices edged higher, supported by macroeconomic developments, firmer futures, and rising finished steel prices. The US-Iran conflict and developments around Indonesia’s proposed nickel taxation lent support to sentiment, pushing stainless steel prices higher and offering mild support to scrap values.
However, gains remained capped in India due to high inventory levels and tax-related invoicing challenges, limiting aggressive price movements despite favourable cost economics.
LME nickel edges up w-o-w
On the cost front, LME three-month nickel prices closed at $17,210/t on 26 March, up 4% w-o-w from $16,425/t. Meanwhile, LME-registered inventories declined slightly to 282,240 t from 283,770 t in the previous week.
BigMint’s scrap assessments
Nearshore-origin SS 304 scrap (loose) was assessed at $1,385/t, up by $5/t w-o-w, while SS 316 scrap held at $2,680/t. SS 201 scrap increased by $10/t to $720/t, whereas SS 430 scrap also edged up by $5/t to $635/t.
In the domestic market, SS 304 scrap (DAP Delhi) rose by INR 3,000/t to INR 123,000/t, while SS 316 scrap was assessed at INR 227,000/t – higher by INR 2,000/t w-o-w. SS utensil scrap prices up by INR 1,000/t at INR 70,000/t.
Outlook
The market is expected to remain firm next week, supported by supply-side constraints and elevated logistics costs. However, softer nickel prices may cap sharp upside, while ongoing geopolitical uncertainties will continue to influence market sentiment.
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