- 316 scrap prices rise on tight availability
- Nickel volatility keeps buyers cautious
India’s stainless steel scrap market remained firm in the week ended 21 August 2026, with prices moving higher amid tight scrap availability, elevated alloy costs and volatile nickel prices. Limited import arrivals, higher freight rates and container shortages continued to restrict overseas supply, prompting mills to rely more heavily on domestic scrap. However, elevated prices kept buyers cautious and limited aggressive restocking.
BigMint’s assessment showed domestic 304-grade stainless steel scrap prices increased by INR 2,000/t w-o-w to INR 145,000/t DAP Delhi. Imported 304 scrap prices also rose by $5/t w-o-w to $1,525/t CFR Mundra, supported by volatile nickel prices and constrained availability.
Market participants reported that scrap availability remained tight, while higher freight costs and container shortages continued to make imports less attractive. As a result, mills remained more dependent on domestic material, supporting local scrap prices despite cautious buying interest.
A trader noted that limited availability had kept international buyers relatively quiet. In Thailand, 304 scrap was heard at around $1,450/t, while 316 scrap was reported at around $2,900/t ex-yard.
316 scrap sees stronger price support
The 316-grade scrap market remained tighter than 304, with higher molybdenum costs and limited availability in both domestic and international markets providing stronger price support.
Offers for 316 scrap were heard at around $2,950-2,980/t, while bookings were reported at around $2,920-2,930/t CFR India, indicating a gap between seller expectations and executable levels.
BigMint’s assessment showed domestic 316-grade scrap prices increased by INR 7,000/t w-o-w to INR 285,000/t DAP Delhi, while imported 316 scrap prices rose by $15/t w-o-w to $2,935/t CFR Mundra.
LME nickel prices currently hovering at around the $17,000/t level, with the latest settlement at $16,860/t, broadly range-bound from the previous week.
Although nickel prices provided some support to stainless steel scrap values, their volatility continued to make buyers cautious. Market participants remained reluctant to build large inventories at elevated price levels, preferring to purchase according to immediate requirements.
Global market scenario
China’s stainless steel scrap market remained under pressure during the week, with 304 scrap prices declining in East China and Foshan amid weak stainless steel futures, softer finished steel prices and falling high-grade NPI prices.
Although scrap-based stainless steel production continues to retain a cost advantage over high-grade NPI, the spread was not sufficient to overcome the broader bearish market sentiment. Higher stainless steel mill production and expectations of a September-October demand recovery provided limited support, as narrowing margins kept mills cautious toward raw-material purchases.
Outlook
India’s stainless steel scrap market is expected to remain firm but range-bound in the near term. Tight domestic availability, restricted import flows and elevated alloy costs are likely to provide a floor to prices. However, high scrap values and volatile nickel prices could limit buying interest and prevent aggressive price gains.
The 316 segment is likely to remain relatively stronger than 304, given tight availability and elevated molybdenum costs. Meanwhile, higher freight rates and container shortages are expected to keep imported scrap less competitive, maintaining mills’ dependence on domestic supply.
Market participants will closely monitor LME nickel movements, molybdenum prices, import availability, freight costs and downstream stainless steel demand for further direction.
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