India: Stainless steel scrap prices remain rangebound w-o-w amid rise in LME nickel

• Nickel futures hit one-month high on sentiment
• Demand likely to remain moderate in near term

India’s imported and domestic stainless steel (SS) scrap prices remained range-bound w-o-w amid increase in LME nickel prices.

According to BigMint’s assessment, domestic 304-grade SS scrap stands at INR 115,000/t ex-Delhi, down by INR 1,000/t w-o-w . On the other hand, the imported variant of the same grade, sourced from nearshore regions, was priced at $1,285/t CFR Mundra, up by $5/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 $15,360/t, up from last week’s $15,200/t. Nickel stocks in LME-registered warehouses dipped slightly, standing at 203,628 t, compared to the previous week’s 204,216 t.

LME nickel futures hit a one-month high yesterday, reflecting improved market sentiment. The rally was driven by easing trade tensions and renewed confidence following China’s anti-involution conference. Despite a stronger US dollar, optimism about policy support and better trading conditions has encouraged buying, with participants expecting a strong short-term trend for nickel.

BigMint’s daily scrap assessments

Nearshore-origin SS 316 scrap (loose) stood at $2,485/t, down $5/t w-o-w.

Nearshore-origin SS 201 scrap (loose) was assessed at $705/t, up by $15/t w-o-w.

Nearshore-origin SS 430 scrap (loose) was assessed at $600/t, up by $10/t w-o-w.

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

Market updates

According to market participants, “Mills currently have adequate material and a steady supply in the pipeline, so imported scrap purchases have been paused and bids remain subdued. Buying activity has largely remained on a need basis, but it is expected to increase later this month as mills look to replenish their inventories.”

Additionally, LME nickel prices remained on higher side so seller’s offers remained high but bids were heard at lower levels.

Outlook

Stainless steel scrap prices are likely to stay range-bound in the near term, as subdued buying interest persists due to weak finished steel demand and the ongoing monsoon season.