India: Domestic finished stainless steel prices hold steady w-o-w on limited activity amid elections

• LME nickel prices edge up despite stock increase
  
  
• Domestic ferro molybdenum prices inch down
  
  

Indian finished stainless steel prices remained stable w-o-w, mainly due to limited activity in the market amid the elections being held in the Mumbai region.

LME nickel prices inch up despite rising stocks

At the time of reporting, three-month LME nickel prices were at $16,055/t, marking a 1% increase from the previous week's $15,865/t. Meanwhile, nickel stocks in LME-registered warehouses rose 6% w-o-w to 159,264 t from 150,840 t the previous week.

Additionally, reports from Indonesia suggest that approved nickel mining quota volumes could drop by up to 27% by 2026. The government plans to reduce license fees for laterite nickel ores with less than 1.5% nickel content if used in battery production, potentially limiting nickel ore availability for other industries like stainless steel.

Domestic finished flats prices steady

BigMint's benchmark assessments for stainless steel (304 series) HRC stood stable at INR 179,000/tonne (t) ex-Mumbai.

In the domestic finished flats segment, prices were also largely stable this week. According to BigMint's assessment SS316 HRC was at INR 321,000-323,000/t ex-Mumbai.

A trader source stated, "The market is closed today due to elections in the Mumbai region. However, demand remains slow and is expected to continue at this pace throughout 2024, with some potential improvement after January."

Finished longs prices maintain stability

BigMint's benchmark assessments for stainless steel 304L (25 to 100 mm) black round bars were at INR 186,000/t, ex-Mumbai

Meanwhile, SS 316L black round bars were at INR 294,000-296,000/t, ex-Mumbai. Price levels for SS 316L bright bars stood between INR 305,000-306,000/t, ex-Mumbai.

SS 304 wire rods (5-16 mm) in Mumbai were reported at INR 166,000-167,000/t, according to BigMint.

Semi-finished prices remain unchanged

Indicative prices for stainless steel semis were at similar levels to last week: SS 304 billets AOD (15 x 15) were priced at INR 163,000-165,000/t ex-Ghaziabad and INR 145,000-147,000/t for the induction grade.

SS 304 ingots stood at INR 122,000-124,000/t, while SS 316 was at INR 218,000-220,000/t, both ex-Delhi.

Meanwhile, prices of imported SS 304 ingots and billets from Vietnam remained stable with SS 304 ingots at $1,540-1,550/t, while SS 316 ingots were priced at $2,650-2,670/t CFR Mundra.

Chinese market

In China, domestic stainless steel prices for 304-grade CRCs stood at RMB 14,300/t ($1,973/t) exw, down by RMB 100/t ($13/t) w-o-w, while FOB prices of 304-grade CRCs were at $2,081/t.

Raw materials scenario

• Ferro molybdenum: Indian ferro molybdenum prices inched down by INR 10,000/t ($118/t) this week, in comparison to the previous assessment on 13 November. Prices remained largely stable, as the global and domestic markets did not experience any major variations. As per BigMint's assessment on 20 November, ferro molybdenum in India stood at INR 2,561,000/t ($30,345/t) exw. No spot trades were recorded this week.
  
  
• Ferro chrome: Indian ferro chrome prices (HC, FeCr60%) stood at INR 108,500/t exw-Jajpur, stable w-o-w.
  
  

Other updates

The international stainless steel market remains weak amid sluggish stainless steel demand. However, Vietnam's lifting of anti-dumping duties on Taiwan's cold-rolled stainless steel will benefit manufacturers like Yusco and Tang Eng. Despite expanded bargaining space in hot-rolled stainless steel from Indonesia Tsingshan, demand remains low, and the market awaits post-Spring Festival demand upturn.

Outlook

Stainless steel prices are likely remain range-bound, driven by volatility in LME nickel prices. Domestic trading activity is expected to remain subdued, with market participants anticipating low-to-moderate engagement.