India: Stainless steel finished and scrap prices corrected amid poor demand

Domestic 304-grade stainless steel scrap prices fell to INR 132,000 a tonne ($1,597 a tonne) ex-Delhi today, according to SteelMint data. The ex-Mumbai price of 304 grade stainless steel HRCs dropped down to INR 244,000/t ($2,952/t). Stainless steel prices were corrected due to weak domestic demand in the finished segment.

At the time of publishing this article, LME's three-months nickel prices rose to around $29,600/t.

Market highlights

Global prices for 304 grade scrap of European-origin dropped down below $1,600 level. "European suppliers are on vacation, and no business is being conducted. Domestic mills are also not interested in buying scrap at the moment," a trader shared. Domestic stainless steel scrap offers were squeezed due to lower demand from the mills.

"Passive sales in the stainless steel downstream industry have been ongoing for some time. December is typically slow. However, we can expect some recovery beginning last week in January," according to a mill sales executive.

Ferro chrome prices rise

Indian ferro chrome prices went up by INR 3,700/t w-o-w as Indian smelters were receiving a large number of inquiries from the export market, which was a good sign because customers from other countries were eager to book the material ahead of the New Year holidays. According to SteelMint on December 22, ferro chrome prices were hovering at around INR 101,200/tonne (t) exw-Jajpur. This week, the chrome ore market showed a slight recovery trend, amid favourable sentiments. This boosted ferro chrome prices as well.

Molybdenum price sustains upword streak

Ovesease prices of Ferro molybdenum continued to remain strong. SteelMint's assessment of FeMo 60% price ex-Nagpur is currently at ? 2,962,500/tonne.

Outlook

The finished segment has been experiencing prolonged demand shortages in the domestic market, which is affecting scrap trades. Market participants are expecting a recovery in the market after the New Year holidays.