India: Stainless steel scrap prices edge up on increased buying activity

• Increased buying activity boosts stainless steel scrap
• LME nickel price dips to $15,695/t

India’s imported and domestic stainless steel scrap tags gained w-o-w amid improved buying activity. According to BigMint’s assessment, domestic 304-grade SS scrap stands at INR 113,500/t ex-Delhi, up INR 500/t . On the other hand, the imported variant of the same grade, sourced from nearshore regions, was priced at $1,315/t CFR Mundra, marking an increase of $25/t w-o-w.

LME nickel prices dip w-o-w

Nickel prices on the London Metal Exchange (LME) have shown little movement. The three-month LME nickel price was recorded at $15,695/t, down from last week’s $15,745/t. Nickel stocks in LME-registered warehouses saw a slight decrease, standing at 203,850 t, compared to the previous week’s 204,252 t.

BigMint’s daily scrap assessments

• Nearshore-origin SS 316 scrap (loose) at $2,485/t, up $15/t w-o-w.
• Nearshore-origin SS 201 scrap (loose) at $700/t, steady w-o-w.
• Nearshore-origin SS 430 scrap (loose) at $600/t, steady w-o-w.
• SS 316 scrap, ex-Delhi, stood at INR 211,500/t, up INR 500/t w-o-w.

Market insights

This week, India’s imported scrap prices have seen an increase particularly in the 300 series segment primarily due to improved transactional activities recorded in the beginning of the week.

As per market sources, inquiries for SS 316 scrap grade has seen a decrease as most mills are buying SS 304 scrap and converting it to SS 316 grade.

The workable levels for SS 304 scrap originating from nearshore regions are between $1,310-1,320/t for sizeable volumes. Meanwhile, offers from suppliers hover between $1,330-1,350/t.

This week, a few deals for SS 316-grade stainless steel scrap were heard at $2,480-$2,490/t.

Domestic market trends

Domestic mills are actively procuring stainless steel scrap, with several large players resuming bookings, which reflects a strong sentiment in the market. However, operational challenges persist due to ongoing labour shortages, which becomes acute particularly during by the summer season. These shortages are impacting scrap processing and logistics at the ground level, creating minor delays in operations.

Major mills are heard procuring scrap of SS 304 grade now at INR 116,000-116,500/t and SS 316 grade at INR 209,000/t, based on 45-day payment terms.

Market outlook

Participants in the market expect prices to remain stable in the short term, barring any major shifts in sentiment or external factors that could disrupt supply and demand dynamics. The market is largely driven by need-based buying, and as long as there are no significant changes in nickel prices or labour conditions, stability is likely to continue.