India: Stainless steel scrap prices rise w-o-w as nickel rallies

• Stainless steel prices firm amid improved mill demand
• Nickel rally lifts cost sentiment across stainless market

India’s stainless steel market traded on the higher side week-on-week in the week ended 23 January, supported by improved demand and firmer sentiment at the mill level. Rising raw material costs, particularly nickel, encouraged mills to maintain elevated price levels, although buying remained selective amid volatility and widening bid-offer gaps in the imported scrap segment.

Domestic 304-grade scrap was assessed at INR 114,000/t DAP Delhi, up by INR 4,000/t w-o-w, while nearshore-origin 304 scrap stood at $1,275/t CFR Mundra.

Imported 304 offers were heard at $1,260-1,280/t CFR, in the domestic market, major mills quoted INR 116,000-117,000/t DAP Delhi.

Market participants noted that while mills have re-entered the market, procurement remains cautious due to expectations of further upside in scrap prices.

LME nickel prices hit 18-month high

Benchmark three-month contract nickel prices on the London Metal Exchange (LME) were at $18,720/t on 23 January, up by 5% from $17,825/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): $2,575/t, steady w-o-w.

Nearshore-origin SS 201 scrap (loose): $665/t, down $5/t w-o-w.

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

SS 316 scrap, DAP Delhi: INR 215,000/t, up INR 3,000/t w-o-w.

SS utensil scrap, DAP Delhi: INR 62,000/t, up INR1,000/t w-o-w.

Outlook

Stainless steel prices in India are expected to remain firm in the near term, supported by elevated nickel prices, rising scrap costs, and supply-side curbs from Indonesia. However, volatility in global nickel markets and resistance at higher price levels may cap sharp upside.