India: Domestic stainless-steel prices rebound w-o-w amid supply crunch

India's domestic stainless-steel prices rebounded, after remaining stable for the past few weeks. Finished products prices showed a rise. Prices of the 304-grade hot-rolled coils (HRCs) increased by INR 3,000/t ($37/t) w-o-w to INR 203,000/t ($2,476/t) exw. Meanwhile, 304-grade scrap prices were stable w-o-w to INR 129,000/t ($1,573/t) exy-Delhi.

The Indian market is facing challenges with an ongoing shortage of materials, particularly noticeable in the case of the 316 series stainless steel, leading to a notable surge in prices. Steady demand has been observed for other series, influenced by the fluctuations in the futures market. Additionally, there has been a rise in the prices of raw materials due to their scarcity.

Simultaneously, prices of imported stainless steel scrap have experienced a significant decline following the decrease in nickel futures prices. Industry participants have pointed out that imported 316 scrap is currently valued at approximately $2,770-2,790/t, while 304 scrap is priced at $1,450-1,470/t, CFR Mundra.

Furthermore, India's largest stainless steel producer has executed a hike of INR 3,000/t in the prices of 316 and 304 HR-CR, compared to the previous adjustment made on 1 August. This adjustment has also impacted the domestic stainless steel market along with the INR 1,000/t increase in JT grade prices.

Raw materials market overview

• Ferro chrome: Indian ferro chrome (HC60%, Si:4%) prices rose by INR 2,000/t, driven by an increase in the offers of domestic producers in response to a surge in export demand from China. According to SteelMint's assessment on 10 August, Indian ferro chrome (HC60%, Si:4%) prices stood at INR 106,000/t exw-Jajpur. Around 3,500 deals were concluded in the range of INR 105,000-107,000/t.
  
  
• Ferro molybdenum: The major factor driving prices is the shortage in material in the market along with growing demand in Asia. The conclusion of domestic auctions at elevated prices has also helped boost prices further, sources informed. Prices of ferro molybdenum (FeMo 60% material) increased by INR 139,000/t w-o-w to INR 3,152,000/t exw-Nagpur.
  
  
• LME nickel: Three-month nickel futures on the London Metal Exchange (LME) decreased by 2.3% w-o-w to $20,070/t.
  
  

Outlook:

Market participants are expecting an increase in prices in the near term. This projection is primarily driven by the limited availability of material and a recent price hike implemented by the largest manufacturer.