- Scrap buying remains limited due to ample inventory
- LME nickel price rebound yet to boost market sentiments
India’s stainless steel scrap market continued to remain weak in the week ended 26 December, with major mills slowing procurement amid comfortable inventory positions and increased reliance on other cost-effective raw material substitutes.
In the imported scrap segment, persistent bid-offer mismatches curtailed trade activity, keeping deal volumes negligible.
Additionally, a leading stainless steel producer that had suspended scrap purchases across all plants since mid-November due to inventory accumulation and the availability of NPI — has restarted buying at one facility, though volumes are reported to be marginal, as per market sources.
Domestic 304-grade scrap prices stood at INR 104,000/tonne (t) DAP Delhi, down INR 2,000/t, while imported 304-grade scrap prices from nearshore origins were at $1,170/t CFR Mundra, down by $10/t w-o-w, according to BigMint’s assessment.
Mill sources noted a sharp decline in order bookings for 300-series stainless steel, prompting producers to scale back raw material procurement. Mills are largely refraining from buying 300-series scrap, including from captive yards, and are limiting purchases to 400-series and 201-grade scrap, with most plants reported to be adequately stocked, capping near-term procurement needs.
BigMint’s scrap assessments
- Nearshore-origin SS 316 scrap (loose): $2,380/t, down $20/t w-o-w.
- Nearshore-origin SS 201 scrap (loose): $620/t, steady w-o-w.
- Nearshore-origin SS 430 scrap (loose): $560/t, steady w-o-w.
- SS 316 scrap DAP Delhi: INR 205,000/t, down INR 1,000/t w-o-w.
- SS utensil DAP Delhi: INR 58,000/t, down INR 1,000/t w-o-w.
Global market sentiments
The US stainless steel scrap market remained quiet and largely closed ahead of the Christmas holidays, with prices holding steady amid minimal trading activity. Market participants reported weak demand, limited cash needs, and little willingness to transact, despite a rebound in LME nickel prices. Buying interest for 304 and 316 grades stayed muted, with nickel and molybdenum movements failing to lift sentiment. Export prices were rangebound, and traders expect near-term inactivity to persist into early January.
LME nickel
Benchmark three-month contract nickel prices on the London Metal Exchange (LME) stood at $15,660/t on 24 December, up by 6% from $14,780/t in the previous week.
Outlook
The stainless steel scrap market is expected to stay subdued over the holiday period and the first week of January 2026, as weak 300-series demand, ample inventories, and increased reliance on alternative raw materials restrain mill purchases. Despite a modest rebound in nickel prices, the impact on scrap procurement remains limited, indicating that both domestic and imported markets are likely to see muted activity until downstream demand strengthens.
Leave a Reply