India: Stainless steel scrap prices remain firm on high raw material costs

• Nickel-led cost pressure supports scrap prices
• Selective buying persists amid volatility

India’s stainless steel market traded on the higher side week-on-week in the period ended 30 January, supported by firmer mill sentiment and elevated raw material costs, particularly nickel. However, buying activity remained selective as price volatility and widening bid-offer gaps, especially in the imported scrap segment, continued to weigh on transactions.

As per BigMint’s assessments, Domestic 304-grade scrap was assessed at INR 116,000/t DAP Delhi, up by INR 2,000/t w-o-w, while nearshore-origin 304 scrap stood at $1,285/t CFR Mundra, up by $5/t w-o-w.

Major mills were quoted 304-scrap at around INR 117,000-119,000/t DAP Delhi in the domestic market, while imported 304 scrap offers were largely heard in the range of $1,270-1,300/t CFR.

Market participants indicated limited fresh bookings. A trader noted that rising chrome and molybdenum prices could push the market higher, but near-term procurement remains cautious. Another buyer said mills are avoiding 316 scrap purchases, as converting 304 into 316 currently gaining cost advantage.

Scrap buying remained muted as finished stainless steel demand in the merchant market stayed weak. Additionally, billet cargoes were heard booked earlier in December 2025 at around $1,530/t were delivered in mid-January, easing immediate scrap requirements.

LME nickel prices remain high

Benchmark three-month contract nickel prices on the London Metal Exchange (LME) were at $18,975/t on closing day at 29 January, slightly up from $18,860/t in the previous week. LME-registered nickel stocks stood at 285,732 t, remained largely range-bound as compared to 285,282 t in the previous week.

BigMint’s scrap assessments

Nearshore-origin SS 316 scrap (loose): $2,580/t, up by $5/t w-o-w.

Nearshore-origin SS 201 scrap (loose): $670/t, up $5/t w-o-w.

Nearshore-origin SS 430 scrap (loose): $600/t, steady w-o-w.

SS 316 scrap, DAP Delhi: INR 219,000/t, up INR 4,000/t w-o-w.

SS utensil scrap, DAP Delhi: INR 62,000/t, steady w-o-w.

Outlook

Indian stainless steel prices are expected to remain firm in the near term, supported by high nickel prices, rising scrap costs, and supply-side curbs from Indonesia. However, weak finished steel demand and nickel price volatility may limit sharp upside.