India: Need-based buying keeps stainless steel flats prices rangebound

• Stainless finished prices hold steady
  
  
• LME nickel prices drop by 9%
  
  
• Despite lower prices, demand remains weak
  
  

India's stainless steel finished flats prices held steady despite weak demand and a decline in LME nickel price levels. Meanwhile, transactions also remained at a low to moderate levels.

BigMint's benchmark assessments for stainless steel (304 series) HRC prices stood at INR 182,000/t ex-Mumbai.

LME nickel price trend

At the time of reporting, three-month LME nickel prices were at $16,180/t, a 9% decrease from the previous week's $17,370/t. Meanwhile, nickel stocks at LME-registered warehouses rose marginally to 135,150 t from 133,284 t in the previous week.

Domestic finished flats segment

In the finished flats segment, prices saw a decrease this week. According to BigMint's assessment, 304 HRC prices stood at INR 181,000-183,000/t, while SS316 HRC was at INR 321,000-323,000/t ex-Mumbai.

Suppliers were quoting INR 193,000-194,000/t for 304 CRC and INR 233,000-234,000/t for 316 CRC, both ex-Mumbai. In contrast, bids for SS 304 CRC were as low as INR 188,000-189,000/t, while offers for 316 CRC reached around INR 328,000-330,000/t, indicating a decrease in buying interest.

A source stated, "Despite lower prices, demand in the market is mainly based on immediate needs. It is expected that the market will further decline after Diwali. Additionally, we are encountering labour issues."

Domestic finished longs' (AOD grade) indicative levels

In the finished longs segment, 304L (up to 100 mm) black round bars were priced at INR 177,000-179,000/t exw-Mumbai, while SS 316L black round bars were offered at INR 283,000-285,000/t exw-Mumbai.

The indicative levels for SS 304L (up to 100 mm) bright bars were heard at INR 197,000-200,000/t, while SS 316L bright bars were at INR 297,000-300,000/t, ex-Mumbai.

Indicative prices of SS 304 wire rods (5-16 mm) in Mumbai were reported at INR 167,000-169,000/t.

China market

In China, domestic stainless steel prices head steady w-o-w. Prices of 304-grade CRCs touched RMB 14,500/t ($2,038/t) exw, while FOB prices of 304-grade CRCs were at $2,090/t.

The China Iron and Steel Association's Stainless Steel Branch indicates a "strong supply, weak demand" situation in China's stainless steel market since 2023. Crude stainless steel production is expected to rise by 3.2-5% to 38-38.5 mnt, while apparent consumption is projected to grow at less than half that rate, resulting in significant oversupply and market imbalance.

Global updates

Acerinox cuts output in Spain

Acerinox's Spanish production sites have reduced capacity since 12 October due to a new temporary employment regulation file (ERTE). This move, surprising given earlier strikes, could stabilise European stainless steel prices by balancing supply and demand amid weak market conditions, rising raw material costs, and increased competition from imports.

South Korea's stainless flats output dips in August

In August, South Korea reduced stainless flats production to 88,000 t, down from 94,000 t in July, following a recovery at POSCO's HR rolling mill. This decline was market-driven, as earlier production rebounded sharply after significant cuts during maintenance from mid-April to mid-June and repairs in late June.