India: Stainless steel scrap market stable but prices of finished products continue to fall

Stainless steel prices in India continued to fall this week. 304 grade stainless steel hot-rolled coil (HRC) prices ex-Mumbai dropped INR 4,000/t ($48/t) w-o-w to INR 226,000/t ($2,735/t), while domestic 304 grade stainless steel scrap prices ex-Delhi were assessed at INR 128,000/t ($1,549/t).

Nickel prices on the London Metal Exchange (LME) fell by around 4% w-o-w and 15% m-o-m. LME three-month nickel prices are currently hovering around $25,200/t. Ferro molybdenum prices also corrected around 8% w-o-w.

Market highlights

Another quiet week was observed in the stainless steel scrap market. European scrap prices fell another $30/t from the previous week, which impacted scrap import offers into India. “Scrap offers have dropped to $1,550-$1,570/t, and buyers are wary of taking positions,” a trader told SteelMint.

“Current domestic market offers are around INR 126,000/t-128,000/t, while 316 scrap is scarce resulting in prices of INR 242,000/t to 245,000/t even after LME nickel and molybdenum prices fell,” a local scrap dealer said.

The finished stainless steel segment remained subdued w-o-w. The market has once again declined. “March is a difficult month for sellers due to the end of the fiscal year. Another month of lower demand is possible,” a dealer from Mumbai was quoted as saying.

Ferro chrome prices stable 

According to SteelMint’s assessment on 23 February, ferro chrome prices were at INR 125,150/t exw Jajpur. Smelters were unwilling to reduce offers despite moderate demand as they expected further increase in ferro chrome purchase tender prices by Chinese stainless steel producers. On the other hand, stainless steel prices in India are under pressure and thus buyers are not interested in booking material at high prices.

Ferro moly prices correct

Domestic  ferro molybdenum prices fell this week by up to 8.5% w-o-w. FeMo 60% prices corrected to INR 4,025,000/t ($48,703/t).

Outlook

This week domestic stainless steel demand remains unchanged. The March fiscal closing is resulting in lower demand. Exports, according to producers, is expected to rise in the coming fiscal year.