- Domestic 304 scrap prices remain unchanged
- PSIC concerns keep market participants cautious
India’s stainless steel scrap prices remained largely rangebound in the week ended 25 September, with domestic 304-grade scrap prices unchanged while 316-grade scrap prices moved higher due to tight supply. Market activity remained cautious amid ongoing concerns over Pre-Shipment Inspection Certificate (PSIC) requirements, limited processing time following the government’s relaxation, and additional import-related costs.
Prices
Domestic 304-grade stainless steel scrap prices remained steady w-o-w to INR 148,000/t DAP Delhi.
Domestic 304-grade stainless steel scrap prices also remained steady w-o-w to INR 153,000/t DAP Mumbai, Western region market remained slow amid festivals. While 316 scrap prices remained on higher side due to shortage with recording at INR 305,000/t DAP Mumbai.
Imported 304 scrap prices inched up by $10/t w-o-w to $1,560/t CFR Mundra. Market indications for 304-grade scrap were heard in the range of $1,540-1,570/t.
On the other hand, 316-grade stainless steel scrap, domestic prices increased by INR 2,000/t to INR 295,000/t DAP Delhi, while imported 316 scrap prices increased by $100/t w-o-w to $3,150/t CFR Mundra. Imported 316 scrap offers were heard at around $3,100-3,200/t while some deals were heard at around $3,050/t.
Market scenario
Market participants remained cautious amid continued uncertainty surrounding PSIC compliance and shipment processing timelines. Mills face a limited window to complete the required processes following the government’s relaxation.
The shorter processing window has created concerns among market participants, particularly for containers already positioned at loading yards. Delays in documentation and clearance could affect the near-term flow of imported scrap into India.
According to market sources, importers are also facing additional charges of around $10/t on scrap imports for PSIC, adding to the landed cost of material.
Meanwhile, some mills continued to face challenges from higher freight rates and PSIC-related issues, prompting buyers to remain selective in their procurement.
Outlook
Stainless steel scrap prices are expected to remain under pressure in the near term, as softer nickel prices, cautious mill buying and growing interest in alternative raw materials could weigh on market sentiment.
However, the revised PSIC issuance timeline could gradually ease import-related bottlenecks and improve scrap availability in the Indian market. Increased availability of imported material, coupled with weak-to-moderate mill buying interest, may limit the scope for a significant price recovery.
At the same time, tight spot availability and firm supplier offers could provide downside resistance, keeping prices largely range-bound rather than allowing a sharp decline.
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