India: Finished stainless steel prices stable, scrap prices witness uptrend

Domestic 304 grade stainless steel scrap prices increased to INR 120,000/t ($1,452/t) ex-Delhi today from INR 118,000/t ($1,429/t) last week, as per SteelMint data. The ex-Mumbai price of 304 grade HRC is stable at INR 244,000/t ($2,952/t). Due to post-festive demand from mills stainless steel scrap prices have been on the rise.

Market highlights

The market has reopened after a long break. Due to the rise in overseas prices, scrap price offers from Indian mills in the domestic market remained on the higher side. Today, 304 scrap trades for European-origin cargo were heard at a price range of $1,400-$1,440.

Finished stainless steel prices in India are stable due to lack of supply from overseas sources and the reduction in domestic inventory.

"After the festival fresh demand is being witnessed," one trader told SteelMint. "Prices are bound to rise in the coming days."

This is despite the fact that LME's nickel 3-months prices are hovering around $22,000/t,

Ferro chrome prices on the rise

According to SteelMint's assessment on 27 October, Indian producers were offering around INR 105,000-106,000/t exw Jajpur, up INR 2,500/t y-o-y, owing to marginally better demand from both the domestic and export markets. Furthermore, despite high production costs, the increase in chrome ore prices supported ferro chrome prices.

Outlook

The demand for finished stainless steel is high and is expected to rise due to the post-festive and post-monsoon demand surge. However, market participants are wary due to global recession fears and volatility in demand.