India: Downturn in stainless steel prices continues
Domestic stainless steel prices in India continued to decline this week too. Prices of 304-grade hot-rolled coils (HRCs) fell by INR 5,000/tonne ($60/t) w-o-w to INR 205,...
Domestic stainless steel prices in India continued to decline this week too. Prices of 304-grade hot-rolled coils (HRCs) fell by INR 5,000/tonne ($60/t) w-o-w to INR 205,000/t ($2,500/t) exw, while domestic 304-grade scrap prices remained stable w-o-w at INR 128,000/t ($1,562/t) ex-Delhi.
The three-month nickel futures on the London Metal Exchange (LME) also dropped by around 3.5% w-o-w and are hovering at around $23,200/t. Meanwhile, ferro molybdenum prices have corrected by around 13.8% w-o-w. Notably, nickel and ferro molybdenum are the key raw materials used in stainless steel production.
Market overview
According to recent trade, the prices for imported scrap have remained constant, hovering around $1,550-$1,570/t. The prices for 316 scrap have been reported to be in the vicinity of $2,920-$2,950/t. The demand for stainless steel scrap appears to have remained stable.
In the meantime, the finished stainless steel sector experienced a significant drop in prices, as the cost of HRC/CRC 304-grade fell by INR 5,000/t compared to the previous week. A seller based in Mumbai commented that rumors were circulating in the market about a leading manufacturer in northern India possibly lowering their list price for 300 series finished HRC/CRC to match the prices of imported coils.
Ferro alloys prices edge down
Indian ferro chrome (HC60%) prices decreased by INR 3,600/t w-o-w to INR 107,800/t exw-Jajpur due to weak demand in both the local and international markets.
Meanwhile, domestic ferro molybdenum prices fell sharply by 13.8% w-o-w. Prices of FeMo 60% material stood at INR 29,75,000/t ($36,295/t).
Outlook
Overall, demand downturn was seen in the domestic stainless steel market this week. Market participants are expecting demand to recover from mid-April.