Stainless steel prices in India’s finish segment have largely remained unchanged for the week, with a slight decrease attributed to a minor drop in LME nickel prices. Scrap prices, both domestically and for imports, have remained stable during this period.
The stability in finished product prices can be attributed to a drop in nickel prices on the LME, down by $585/t w-o-w. Nickel prices for 3-month delivery on LME saw a 3% decrease, reaching $18,740/t. Notably, nickel stocks in LME warehouses are at 78,594 t.
India’s stainless steel 304 HRC prices stood at INR 176,000/t ex-Mumbai and domestic 304-grade scrap prices stood firm at INR 120,000/t ex-works Delhi, BigMint’s assessment revealed.
Scrap market
In the domestic scrap market, prices of 304 scrap have held steady between INR 119,000-121,000/t ex-Delhi NCR, based on cash payment terms. According to sources, major mills are purchasing 304 scrap at approximately INR 121,000-122,000/t DAP, with a credit period of 45 days.
A source informed BigMint, “Only larger mill-based buyers are currently active in procuring scrap in the domestic market.”
Throughout the week, imported offers have stayed consistent, with suppliers maintaining prices of 304-grade scrap at $1,410-1,430/t. Similarly, prices of 316-grade scrap were noted at $2,575/t CFR Mundra. Despite these stable price points, market demand and purchasing interest have remained subdued. Additionally, offers of 430-grade scrap sourced from nearby locations are available within the range of $650/t to $670/t.
Offers of SS 304 scrap of Singapore-origin stood at $1,440-$1,460/t, while 316 stood at $2,580-2,600/t CFR Mundra.
Meanwhile, SS 304 turnings offer originating from New Zealand was at $1,350-$1,360/t and SS 316 turnings stood at $2,360-$2,370/t, CFR Mundra
Finished segment
As per BigMint’s assessment, 304 HRC is priced at INR 176,000/t, while 316 HRC stood at INR 306,000/t, ex-Mumbai.
According to a source from the buyer’s side, “The market continues to experience low activity with minimal interest from buyers, largely due to the fluctuating prices of LME Nickel. Buyers are exercising caution and adopting a “wait-and-see” approach to better understand the current market dynamics.”
Meanwhile, in the longs segment price indications for 304 black round bars were heard at INR 167,000-169,000/t, exw-Ghaziabad.
Additionally, SS 304 pipe prices were heard at INR 194,000-196,000/t and that of SS 316 pipe stood at INR 325,000-330,000/t levels, ex-Mumbai.
Meanwhile, imported offers of SS 304 HRC from China are currently at $1,890-$1,910/t CFR west coast, India. Offers of SS 304 HRC stood largely stable as compared to the previous week amid limited buying activities seen in the market.
China market overview
During the week, China’s domestic stainless steel market experienced a minor drop. Prices of 304 grade CRC reached RMB 14,500/t ($2,002/t) ex-works. FOB prices of 304 grade CRC stood at $2,079/t, down by $16/t.
Recent updates
China’s steel mills observed 1 May as holiday, and the European Union aims to finalise an anti-circumvention investigation concerning hot-rolled stainless steel from Indonesia by 11 May. These occurrences have impacted market sentiment, and a clearer understanding of the market may emerge post-holidays.
Raw materials scenario
Ferro molybdenum: Ferro molybdenum prices in India experienced an increase of INR 101,000/t ($1,210/t) w-o-w as compared to the assessment on 24 April. Rising ore prices were accompanied by an increase in enquiries from China, which helped to push up prices.
As per BigMint’s assessment on 1 May, Indian ferro molybdenum prices were at INR 2,496,000/t ($29,892/t) exw-Nagpur on a 60% pro rata basis.
Ferro chrome: Indian ferro-chrome prices (HC, FeCr60%) stood at INR 107,900/t exw-Jajpur. Prices witnessed a marginal drop of INR 700/t w-o-w.
Recent deals
10 t of SS 304 scrap was traded at INR 120,000/t, ex-Delhi.
Around 100 t of SS 430 scrap originating from Thailand was heard traded at $670/t, CFR Mundra.
A recent deal for 1 bundle of SS 304 black bar was heard at INR 168,000/t, ex-Ghaziabad.
Outlook
Stainless steel prices are expected to remain range-bound in the coming week due to market uncertainty stemming from ongoing geopolitical tensions, alongside potential impact of fluctuations in LME nickel prices.