India: Finished stainless steel prices remain rangebound w-o-w despite weak demand

• Weak demand keeps finished SS prices rangebound
  
  
• LME nickel prices edge up by 1%
  
  

Indian stainless steel finished product prices remained rangebound with minor fluctuations seen throughout the week, driven by need-based buying. Despite a 1% gain in LME nickel prices, domestic prices stayed largely stable due to continued weak demand.

LME nickel prices edge up

At the time of reporting, three-month LME nickel prices were at $16,185/t, marking a 1% increase from the previous week's $16,010/t. Meanwhile, nickel stocks in LME-registered warehouses rose 3% w-o-w to 164,430 t from 158,950 t last week.

Nickel prices rebounded as the US dollar weakened, making the metal cheaper for global buyers. Chinese stainless steel futures also recovered from multi-year lows, supporting the price increase. Additionally, low nickel prices encouraged downstream buyers to purchase more. However, rising inventories of refined nickel may cause short-term market volatility, as increased supply could lead to price fluctuations.

Domestic finished flats

BigMint's benchmark assessments for stainless steel (304 series) hot-rolled coils (HRCs) was stable at INR 178,000/t ex-Mumbai, down INR 1,000/t w-o-w.

In the domestic finished flats segment, prices remained largely stable and a few grades saw a slight decline this week. According to BigMint's assessment, SS316 HRCs were at INR 323,000-324,000/t ex-Mumbai.

A source informed, " Demand for finished materials is currently weak, and the domestic market remains slow. Overall, market conditions are moderate, with many awaiting a potential demand increase that could drive activity and price adjustments. "

According to market sources, a slight material shortage has been reported in the stainless steel flats segment, particularly in the 200 series, due to imported consignments, reportedly from China, being detained at ports by Indian authorities. Although the release of the containers is anticipated soon, no definitive timeline has been provided.

Finished longs prices steady

BigMint's benchmark assessment for stainless steel 304L (25-100 mm) black round bars was at INR 178,500/t ex-Mumbai.

Meanwhile, SS 316L black round bars stood at INR 289,000-291,000/t ex-Mumbai, remaining steady w-o-w. Prices of SS 316L bright bars stood at INR 310,000-311,000/t ex-Mumbai, firm w-o-w.

SS 304 wire rods (5-16 mm) in Mumbai were recorded by BigMint at INR 162,000-163,000/t.

A trader source informed: "The overall finished segment is currently slow, mainly due to the conclusion of the Maharashtra elections. However, with the formation of the new government expected soon, trade activity is anticipated to pick up in the coming weeks. "

Chinese prices edge down

In China, domestic stainless steel prices for 304-grade cold-rolled coils (CRCs) stood at RMB 13,950/t ($1,918/t) exw, down by RMB 50/t ($7/t) w-o-w, while FOB prices of 304-grade CRCs were at $1,974/t.

Global updates

Japan's stainless steel exports up in Oct: Japan's stainless steel exports rose by 4.6% in October, reaching 61,400 t, though the average export unit price dropped by 1.9%. Exports to China, South Korea, and Taiwan grew, while shipments to the US and Thailand declined. Overall, the total export volume of special steel products fell by 12.5% compared to the previous month.

Raw materials scenario

Ferro molybdenum: Indian ferro molybdenum prices inched down by INR 5,000/t ($59/t) this week, in comparison to the previous assessment on 27 November. Prices were steady as majority of the producers kept their offers firm despite some negotiations from buyers.

As per BigMint's assessment on 4 December, ferro molybdenum in India stood at INR 2,544,000/t ($30,043/t) exw.

Ferro chrome: Indian ferro chrome prices (HC, FeCr60%) stood at INR 106,100/t exw-Jajpur, down INR 1,050/t w-o-w.

Additionally, at Vedanta-FACOR's ferro chrome auction on 2 December, the 10-150 mm lot was sold at INR 105,500/t exw, matching the base price. This marks a decline of INR 1,200/t from the 22 November auction, reflecting weak demand and buyer resistance to higher bids.

Outlook

In the near term, market prices are expected to undergo a minor correction, as demand typically weakens towards the year-end. Market participants anticipate a pickup in demand after January 2025.