- Utensil tags edge up, reflecting improved finished demand
- LME nickel prices climb up by 1% w-o-w on Fed rate hopes
India’s domestic and imported stainless steel (SS) scrap prices strengthened this week, supported by improved mill buying and firmer finished steel demand. The uptrend was reinforced by bullish alloy markets, where higher ferro molybdenum and ferro chrome prices added cost pressure.
BigMint assessed domestic 304-grade scrap at INR 114,000/tonne (t) ex-Delhi, up INR 1,000/t w-o-w, while the imported 304-grade from nearshore origins remained stable at $1,280/t CFR Mundra.
Domestic scrap remained competitive against imports, with landed costs of the 304-grade pegged at INR 116,000/t versus INR 114,000/t available locally. Still, bid-offer mismatches persisted, with suppliers quoting up to $1,300-1,320/t but deals concluding at $1,270-1,280/t.
Demand drivers
Finished demand added momentum, with utensil prices gaining INR 1,500/t w-o-w and sustained strength in the 200-series. Infrastructure demand also provided support, with Jindal Stainless supplying 1,031 t of 301N stainless steel for Bengaluru Metro Phase 2, underlining stainless steel’s critical role in transport projects.
Global cues
Ferro molybdenum surged INR 66,000/t ($749/t) w-o-w to INR 3,166,000/t exw-India, tracking LME futures at two-year highs. Ferro chrome (HC60%, Si:4%) prices increased by INR 4,400/t ($50/t) as compared to the assessment on 3 September. Prices rose following trades concluded at higher offers. Tight supply, stemming from some suppliers staying away from the market, has led to the sharp uptrend in recent weeks.
LME nickel prices gained 1% w-o-w to $15,365/t following an increase in the US Consumer Price Index (CPI) and expectations of Fed rate cuts. However, nickel warehouse inventories edged up 4% w-o-w at 223,152 t.
In China, the stainless steel market showed signs of revival. Inventories in Wuxi and Foshan fell 1.75% w-o-w to 902,600 t as of 11 September, marking the tenth straight w-o-w drop. The seasonal demand pick-up, coupled with higher nickel and chromium costs and mill price hikes, strengthened sentiment despite cautious downstream buying.
BigMint scrap assessments
- Nearshore SS 316 scrap (loose): $2,495/t, up by $5/t w-o-w
- Nearshore SS 201 scrap (loose): $660/t, up $20/t w-o-w
- Nearshore SS 430 scrap (loose): $600/t, steady w-o-w
- SS 316 scrap ex-Delhi: INR 216,000/t, up by INR 3,000/t w-o-w
- SS utensil ex-Delhi: INR 58,500/t, up INR 1,500/t w-o-w
Outlook
Stainless scrap prices are expected to stay bullish in the near term, with ferro molybdenum, ferro chrome, and nickel tags providing a strong cost floor. Seasonal festive demand and inventory restocking by mills are likely to support momentum, though bid-offer gaps may keep trade volumes limited.
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