India: Stainless steel scrap prices stay firm amid supply tightness, weak imports

• Imports remain unviable amid logistics pressure
• Domestic scrap shortage supports price uptrend

India’s stainless steel scrap market remained firm in the week ending 10 April, supported by constrained imports and limited domestic availability. Imported material continued to remain unviable due to elevated freight and geopolitical disruptions, prompting suppliers to divert cargoes to alternative destinations such as South Korea, tightening supply in the Indian market.

Domestic scrap availability remained restricted, pushing spot prices higher. Trade levels for 304 scrap were reported at INR 132,000-135,000/t, while 316 scrap stood at INR 245,000-250,000/t (DAP Delhi). Market participants indicated that suppliers kept offers firm, supported by ongoing supply constraints.

Global cues and cost-side movement

Asian stainless steel markets reflected improved sentiment following the de-escalation of tensions in the Middle East, particularly after a temporary ceasefire between the US and Iran and the reopening of the Strait of Hormuz. Market participants expect increased energy supply and lower crude oil prices to ease production and logistics costs across the stainless steel value chain.

A China-based trader noted that reduced energy costs are likely to support downstream manufacturing activity. Exporters, however, maintained stable offer levels during the week, while closely monitoring further developments. Improved macro sentiment has also raised expectations of a gradual recovery in regional demand and overall global economic confidence.

LME nickel prices edge down w-o-w

On the cost side, benchmark three-month contract nickel prices on the London Metal Exchange (LME) closed at $17,205/t on 9 April, remaining largely range-bound with $17,060/t in the previous week. LME-registered nickel stocks stood at 281,496 t compared to last week’s 281,496 t, range-bound w-o-w.

BigMint’s scrap assessments

Nearshore-origin SS 304 scrap (loose): $1,400/t, steady w-o-w.

Nearshore-origin SS 316 scrap (loose): $2,730/t, up $5/t w-o-w.

Nearshore-origin SS 201 scrap (loose): $730/t, steady w-o-w.

Nearshore-origin SS 430 scrap (loose): $650/t, up $15/t w-o-w.

SS 304 scrap, DAP Delhi: INR 132,000/t, up INR 4,000/t w-o-w.

SS 316 scrap, DAP Delhi: INR 245,000/t, INR 7,000/t w-o-w.

SS utensil scrap, DAP Delhi: INR 70,000/t, steady w-o-w.

Outlook

Stainless steel scrap prices are expected to remain firm in the short term, although improved global supply conditions and easing logistics costs may cap further upside.