India: Stainless steel scrap prices range-bound w-o-w amid subdued demand

• LME nickel prices edge higher w-o-w
• Scrap market expected to stay range-bound

India’s imported and domestic stainless steel (SS) scrap prices remained range-bound w-o-w while domestic SS scrap saw a slight increase despite subdued demand.

According to BigMint’s assessment, domestic 304-grade SS scrap stands at INR 116,000/t ex-Delhi, up by INR 3,000/t w-o-w . On the other hand, the imported variant of the same grade, sourced from nearshore regions, was priced at $1,280/t CFR Mundra, dipping by $20/t w-o-w.

LME nickel prices up w-o-w

Nickel prices on the London Metal Exchange (LME) have shown little movement. The three-month LME nickel price was recorded at $15,200/t, slightly up from last week’s $15,020/t. Nickel stocks in LME-registered warehouses remained range-bound, standing at 204,216 t, compared to the previous week’s 203,598 t.

LME nickel futures reached a two-week new high as the US Federal Reserve is expected to cut interest rates by more than anticipated, weakening the dollar. Besides, China outlined 19 measures to strengthen consumers purchasing power which further drove up nickel prices. However, market participants foresaw price volatility as the rainy seasons in the Philippines and Indonesia ended, which would lead to increased nickel ore shipments. Additionally, demand from China’s stainless steel market remains weak.

BigMint’s daily scrap assessments

Nearshore-origin SS 316 scrap (loose) stood at $2,490/t, steady w-o-w.

Nearshore-origin SS 201 scrap (loose) was assessed at $690/t, down by $10/t w-o-w.

Nearshore-origin SS 430 scrap (loose) was assessed at $590/t, down by $10/t w-o-w.

SS 316 scrap, ex-Delhi, stood at INR 211,000/t, up INR 1,000/t w-o-w.

Market updates

As per market participants, ” Mills currently have sufficient material and supply in the pipeline, so imported scrap purchases have been on hold. Additionally, bids remain low. However, buying activity is expected to resume from next month.”

Additionally, for immediate need basis buyers are preferring domestic scrap. Buying activity remained low to moderate for domestic scrap.

Meanwhile, major mill scrap buying prices for SS 304 stood at INR 118,000/t and for SS 316 the prices were heard at INR 213,000/t for 45 days payment terms.

Outlook

Stainless steel scrap prices are expected to remain range-bound in the near term as buying interest remains subdued amid weak finish demand.