Domestic 304 grade stainless steel scrap prices surged to INR 128,000/t ($1,583/t) ex-Delhi today from INR 124,000/t ($1,533/t) last week, as per SteelMint data. Prices were heard to have gained support due to the surge in overseas bids.
Sellers are quoting higher prices due to a surge in LME nickel prices and scrap scarcity in the international market. Notably, LME’s 3-months nickel prices jumped to over $29,000/t at the time of publishing the article, higher by 22% compared to the last week level.
“Today, deals for 304 grade scrap for Europe-origin cargo are happening at a price range of $1,580/t-$1,600/t which is higher by $100/t over the last week’s levels”, a seller told SteelMint. Positive overseas sentiments reflected in the domestic stainless steel scrap market.
Meanwhile, prices of 304 grade stainless steel HRCs remained stable w-o-w at INR 244,000/t ($3,017/t) ex-Mumbai despite the surge in LME prices. “There is demand for 316 grade material, although the availability is a challenge,” according to a Mumbai-based buyer.
Ferro chrome price trend
According to SteelMint’s assessment on 15 November, ferro chrome prices stood at INR 100,300/t exw. However, buyers are anticipating that prices may go down due to subdued demand in India and falling Chinese prices.
Outlook
Prices of stainless steel scrap appear to be bullish and sellers are optimistic about the near term outlook. On the other hand, finished stainless steel demand remains gloomy and market participants are expecting corrections in the coming days.
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