India: Imported, domestic stainless steel scrap prices range-bound w-o-w amid weak demand

• Indonesia nickel production surges, impacts prices
  
  
• Indian market awaits post-Budget demand recovery
  
  

India's domestic and imported stainless steel (SS) scrap prices remained range-bound w-o-w despite a drop in LME nickel tags. Scrap buying was limited by persistent weak demand and high inventories in the finished SS segment.

As per BigMint's assessment, domestic 304-grade SS scrap stood at INR 118,000/t ($/t) ex-Delhi, while the imported variant of the same, originating from the near-shore region, was priced at $1,310/t CFR Mundra, stable w-o-w.

LME nickel prices dip w-o-w

At the time of reporting, three-month LME nickel prices stood at $15,705/t, down by 1% from last week's $15,905/t. Meanwhile, nickel stocks in LME-registered warehouses stood at 173,064 t, up 2% from the previous week's 169,494 t.

Indonesia's nickel production skyrocketed from 358,000 t in 2017 to 2.2 mnt in 2023, leading to an oversupply and driving prices to a 4-year low. While mining quotas aim to stabilise the market, persistent oversupply continues. Shifting demand from electric vehicles and new battery chemistries in China complicate recovery. Indonesia has set its 2025 nickel mining quota at 298.5 mnt.

BigMint's bi-weekly assessments

Nearshore-origin SS 316 scrap (loose) was at $2,510/t, down by $10/t w-o-w.

Nearshore-origin SS 201 scrap (loose) was at $700/t, up by $5/t w-o-w.

Nearshore-origin SS 430 scrap (loose) was at $600/t, steady w-o-w.

SS 316 scrap, ex-Delhi stood at INR 217,000/t ($/t), unchanged w-o-w.

In week 4 of 2025, BigMint observed trades of around 300 t of 304 scrap at $1,300-1310/t, originating from Middle East to Mundra CFR. Additionally, trades of around 300 t were heard for SS 316 scrap originating from Middle East at $2,510-2520/t CFR Mundra.

Market scenario

Suppliers offered SS 316 scrap at $2,540-2,550/t, while bids hovered at $2,510-2,520/t.

Meanwhile, SS 304 scrap offers were heard at $1,320-1,340/t, and bids were observed at $1,290-1,300/t, both CFR Mundra.

In the domestic market, trade activities remained low, as buyers were more inclined towards imported material, due to enough inventory levels in the market.

Additionally, SS 304 offers were heard at INR 117,000-118,000/t and SS 316 offers were heard at INR 216,000-217,000/t.

Outlook

The stainless steel market remains cautiously optimistic, with expectations that the upcoming Budget will drive demand through government infrastructure projects. Industry participants anticipate improved price movements and demand following the Budget, with increased government spending seen as a key driver of the market in the near term.