India: Finished stainless steel prices remain range-bound w-o-w on need-based buying

• Market expects Union Budget to boost demand
  
  
• Steady scrap prices keep longs tags supported
  
  

India's finished stainless steel prices remained largely stable w-o-w amid need-based procurement.

While most grades of finished flats saw a slight decline, SS 304 bucked the trend, registering an increase. Meanwhile, finished longs prices remained unchanged amid a sluggish market, driven primarily by urgent, need-based demand.

LME nickel prices hold steady

At the time of reporting, three-month London Metal Exchange (LME) nickel prices remained largely stable at $15,790/tonne (t), down slightly from last week's $15,850/t. Nickel stocks in LME-registered warehouses increased by 1% to 170,214 t, compared to 167,814 t in the previous week.

Finished flats range-bound w-o-w

BigMint's benchmark assessment for stainless steel (304 series) hot-rolled coils (HRCs) stood at INR 180,000/t ex-Mumbai, up by INR 3,000/t. Meanwhile, SS 316 HRCs were priced at INR 321,000-323,000/t ex-Mumbai, stable w-o-w.

Notably, a major coil manufacturer lifted prices of 304 HRCs and CRCs by up by INR 2,000/t.

A trader noted, "Demand remains subdued amid expectations regarding the upcoming budget. Government projects could boost demand, and the imposition of a safeguard duty on stainless steel may lead to an additional INR 2,000-3,000/t increase for flat products, potentially lifting market sentiment."

Finished longs stable w-o-w

BigMint's assessment for SS 304L (25-100 mm) black round bars was at INR 170,000/t ex-Mumbai, stable w-o-w.

Meanwhile, SS 316L black round bars stood at INR 280,000-282,000/t ex-Mumbai. Prices of SS 316L bright bars stood at INR 301,000-303,000/t ex-Mumbai, firm w-o-w.

SS 304 wire rods (5-16 mm) in Mumbai were recorded at INR 157,000-159,000/t, reflecting a slight rise of INR 500/t w-o-w.

A source highlighted, "Stable scrap prices, both domestically and globally, have supported long product tags. However, demand remains subdued in this segment as well."

Raw materials overview

Ferro molybdenum: Indian ferro molybdenum prices stayed unchanged w-o-w in comparison with the previous assessment on 15 January 2025. Prices were steady, as the market witnessed limited movements, both in the global and domestic sectors.

As per BigMint's assessment on 22 January, ferro molybdenum prices in India were at INR 2,520,000/t ($29,110/t) exw.

Ferro chrome: Indian high-carbon ferro chrome (HC60%, Si:4%) prices stood at INR 98,200/t, largely stable w-o-w.

Global updates

Taiwanese mills to announce Feb prices post-Lunar New Year

Taiwan's upstream stainless steel mills are likely to announce February prices after the Lunar New Year holidays. Despite a rebound in LME nickel tags and rising prices in China, domestic and export demand in Taiwan remains weak, with significant price hikes unlikely in the short term due to competitive imports.

China's stainless steel exports surge in Dec

China's stainless steel exports in December 2024 touched 465,700 t, up 38.8% y-o-y and 6.01% m-o-m. Imports in December increased by 9.26% m-o-m to 142,300 t, though they were down by 46.9% from last year. Total exports for 2024 rose 2.9%, while imports fell 9.33%, leading to a 53.23% surge in net exports, indicating oversupply in the domestic market.

Outlook

The stainless steel market remains cautiously optimistic, as the upcoming budget is expected to bring opportunities through government infrastructure projects. Industry participants expect improved demand and price movements following the budget. The imposition of safeguard duties and an increase in government spending could serve as key drivers for the market in the near term.