India: Persistence of lower demand drags down stainless steel prices

The stainless steel market in India has been experiencing a downward trend due to decreased demand and falling prices of imported materials. These factors can be attributed to liquidity issues, ongoing elections in the country, and upcoming festivals. Additionally, LME nickle have also seen a decline.

As per SteelMint's assessments, 304-HRC is currently priced at INR 192,000/t ($2,305/t), fallen significantly by INR 7,000/t ($84/t) while 304-grade CR prices are in the range of INR 205,000/t ($2,461/t) exw-Mumbai, decreased by INR 4,000/t ($48/t) w-o-w.

In contrast, the domestic scrap market has remained relatively stable, with 304-grade scrap being around INR 119,000/t and 316-grade scrap being around INR 210,000/t, exw-Delhi.

Market participants have noted that imported 304 CRC from the Far East is available for INR 200,000/t, which is more cost-effective than the domestic material. Meanwhile, imported 304 HRC is available in the range of INR 180,000-181,000/t, respectively.

A U.P.-based stainless steel company, Rimjhim offered around INR 184,000/t and INR 194,000/t for 304-grade HRCs and CRCs. Meanwhile, for 316-grade HRCs, it is around INR 315,000/t, and for CRCs, it is INR 325,000/t.

One market participant has stated that major mills have reduced their prices significantly in order to get orders and compete with cheaper imports. On the other hand, bids and offers for 304 scrap in India hovered between $1,300-1,350/t while around 50 t of trade concluded at around $1,350/t, CIF Mundra. As for 316 scrap, it was heard between $2,550-2,600/t CFR Mundra from nearshore.

Additionally, China's 304-grade CR prices remained relatively stable at around $2,140-2,180/t, FOB China.

Raw materials overview

• Ferro chrome: Indian ferro chrome prices (HCFeCr60%) fell by INR 1,300/t w-o-w. This decline can be attributed to reduced export bookings and a diminished market's willingness to accept higher price offers. As per SteelMint's assessment of high-carbon ferro chrome (HCFeCr60%) prices stood at INR 106,400/t exw-Jajpur.
  
  
• Ferro molybdenum: As per SteelMint's assessment, Indian ferro molybdenum prices stood at INR 2,440,000/t exw-Nagpur, for 60% moly content.
  
  
• LME nickel: Three-month nickel futures on the LME is currently hovering at around to $17,800/t.
  
  

Outlook

Given the ongoing festive and local election, it is anticipated that demand will continue to decline, causing prices to further drop and buyers will be active from the fourth week of this month.