- Imported 304 scrap falls by $20/t w-o-w to $1,500/t CFR Mundra
- Tight availability supports 316 scrap despite broader market weakness
India’s stainless steel scrap market remained under pressure in the week ended 16 October 2026, as falling London Metal Exchange (LME) nickel prices, subdued finished steel demand and cautious mill procurement weighed on sentiment. The approaching Dussehra festivities further limited trading activity, while the availability of alternative raw materials, including nickel pig iron (NPI) and billets, reduced mills’ interest in scrap purchases.
LME nickel was hovering around $15,350/t at the time of assessment. Market participants reported adequate availability of European scrap, while some western Indian mills were heard to have secured NPI to meet their raw material requirements. Although demand for finished flat products remained firm, the longs segment continued to face weak domestic buying and limited export opportunities.
Domestic scrap prices show mixed movement
Domestic 304 stainless steel scrap prices in Delhi increased by INR 1,000/t w-o-w to INR 148,000/t DAP, while Mumbai prices declined by INR 2,000/t to INR 150,000/t DAP. Trading activity in Mumbai remained subdued amid falling nickel prices, weak buying interest and festive-related slowdown.
Domestic 316 scrap prices in Mumbai fell by INR 5,000/t w-o-w to INR 300,000/t DAP, while Delhi prices remained unchanged at INR 298,000/t DAP. Limited availability continued to provide some support to 316 scrap despite the broader market weakness.
Imported scrap prices decline
Imported 304 stainless steel scrap prices fell by $20/t w-o-w to $1,500/t CFR Mundra. Market indications ranged from $1,470-1,530/t, although offers for larger quantities remained above $1,500/t.
Imported 316 scrap prices declined by $45/t w-o-w to $3,100/t CFR Mundra. Offers were reported at $3,100-3,150/t, while deals were heard at $3,125-3,130/t.
NPI competition weighs on procurement
Bearish sentiment in the high-grade NPI market intensified amid weak stainless steel product sales and elevated social inventories. Mills reduced NPI procurement, while the relative cost competitiveness of scrap influenced raw material purchasing decisions. However, sluggish finished steel demand continued to constrain overall procurement activity.
According to a trader, some western Indian mills had secured NPI, limiting their interest in scrap purchases. Meanwhile, tight availability of 316 scrap and elevated molybdenum prices continued to provide support to the grade despite falling prices.
Outlook
Indian stainless steel scrap prices may face further corrections as falling nickel prices, weak finished steel demand and alternative raw material availability constrain procurement. Buying activity may remain subdued around the Dussehra festivities. However, tight 316 scrap availability and elevated molybdenum costs may limit further downside in the grade relative to 304 scrap.
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