- 316-grade scrap surges on ferro molybdenum rally
- Buyers turn cautious amid nickel price volatility
Domestic stainless steel scrap market remained elevated in the week ended 15 May 2026, supported by tight global supply conditions, firm alloy prices, and continued geopolitical uncertainty impacting the broader nickel value chain.
Market participants said that sentiment remained supported despite some correction in nickel prices toward the end of the week after Indonesia postponed its proposed mineral royalty and export tariff revisions. The decision partially eased earlier concerns over higher export taxes, prompting buyers to adopt a wait-and-watch approach.
Meanwhile, ferro molybdenum prices in India surged to their highest level since March 2023 amid a global shortage of molybdenum concentrate and stronger procurement demand from Chinese stainless steel producers. The sharp rise in alloy costs continued to support higher 316-series scrap prices globally.
BigMint’s benchmark domestic 304 stainless steel scrap prices increased by INR 1,500/t w-o-w to INR 148,000/t DAP Delhi. The 316-grade scrap segment witnessed a sharper rise, increasing by INR 8,000/t amid limited spot availability and elevated ferro molybdenum prices.
In contrast, utensil scrap prices declined by INR 3,000/t to INR 67,000/t. Market participants attributed the correction to continued pressure from lower-priced imports following the extension of QCO exemptions until 26 October 2026, which has eased direct imports into India and increased the flow of Chinese-origin material into the domestic market.
Import offers also strengthened during the week, reflecting firm global scrap sentiment and higher stainless steel production costs internationally. BigMint’s imported 304 scrap assessment increased by $20/t w-o-w to $1,550/t CFR Nhava Sheva, while imported 316 scrap prices rose by $35/t to $2,870/t CFR India.
Market sources reported that offers for imported 316 scrap were heard at around $2,900/t CFR India, while workable bids remained around $2,850–2,870/t, indicating a widening gap between buyer expectations and seller indications.
Industry participants informed that domestic mills continued active procurement amid tightening availability, although actual transaction volumes remained low due to cautious downstream stainless steel demand and uncertainty in nickel price direction.
Outlook
India’s stainless steel scrap market is expected to remain firm, supported by tight domestic availability, elevated alloy costs, and higher import offers. However, volatility in LME nickel prices and cautious buying sentiment may continue to limit aggressive spot transactions. Market participants will closely monitor developments in Indonesia’s nickel policies, Chinese stainless steel demand, and ferro molybdenum price trends for further market direction.
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