India: Finished stainless steel prices stable w-o-w; demand continues to remain weak

The stainless steel market in India noticed varied trends across commodities this week. Prices for 304-grade hot-rolled coils (HRCs) remained stable w-o-w at INR 198,000/t ($2,415/t) exw amid declining demand. Meanwhile, 304-grade scrap prices fell w-o-w to INR 129,000/t ($1,573/t) ex-Delhi.

The finished stainless steel market is still experiencing subdued demand, leading to prices remaining stable. Limited buying enquiries contributed to further price volatility. Additionally, hot rolled coils prices are under pressure with very limited trade as compared to cold rolled coils.

According to sources, imported 304-grade scrap was being offered in the range of $1,480-$1,490/t, up by $15/t w-o-w. The hike in offers was due to improving demand of 300 series scrap.

India's stainless steel imports up in May'23

Stainless steel scrap imports into India stood at 99,963 tonnes (t) in May'23, up 8% m-o-m as compared to 92,355 t in the previous month. On a y-o-y basis, imports increased by 11% from 89,995 t in May'22.

Out of total imports in May'23, zurik scrap was 20,837 t and non-zurik was 79,126 t.

Raw materials market overview

• Ferro chrome: Indian ferro chrome (HC 60%) prices continued their downtrend this week. Prices decreased by INR 3,100/t w-o-w due to bearish demand amid weak Chinese market sentiments. According to SteelMint's assessment on 29 June, domestic ferro chrome prices stood at INR 106,000/t exw-Jajpur. Around 5,500 t of deals were concluded in the range of INR 105,000-108,000/t as producers were frantic to make bookings, fearing further price reduction.
  
  
• Ferro molybdenum: On the other hand, prices of ferro molybdenum (FeMo 60% material) stood at INR 26,71,600/t, showing a slight increase of 0.3% w-o-w.
  
  
• LME nickel: Three-month nickel futures on the London Metal Exchange (LME) decreased marginally by 1% w-o-w to hover around $20,580/t.
  
  

Outlook

Market participants are expecting the bearish trend to continue in the near term due to limited demand in the market.