India: Stainless steel finished product prices remain stable w-o-w ahead of Diwali

• Need-based procurement seen amid weak demand
  
  
• Imported scrap offers dip on falling LME nickel prices
  
  

India's stainless steel prices, including domestic finished flats and scrap, remained stable w-o-w, driven by need-based buying ahead of Diwali. Meanwhile, imported scrap offers saw a minor decline this week, aligning with the drop in London Metal Exchange (LME) nickel levels.

BigMint's benchmark assessments for stainless steel (304 series) hot-rolled coils (HRC) stood at INR 182,000/tonne (t) ex-Mumbai, while domestic 304-grade scrap was priced at INR 121,000/t exw-Delhi.

LME nickel prices drop, stocks rise

At the time of reporting, three-month LME nickel prices were at $15,890/t, marking a 2% decrease from the previous week's $16,740/t. Meanwhile, nickel stocks in LME-registered warehouses rose 8.14% w-o-w to 146,154 t from 135,150 t the previous week.

Domestic finished flats prices hold steady

In the domestic finished flats segment, prices were largely stable 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 quoted INR 193,000-194,000/t for 304 cold-rolled coils (CRCs) and INR 333,000-334,000/t for 316 CRCs, both ex-Mumbai. In contrast, bids for 304 CRCs were as low as INR 188,000-189,000/t, while offers for 316 CRCs touched INR 328,000-330,000/t, indicating a decrease in buying interest.

A source stated, "Despite the drop in prices, market demand is primarily being driven by immediate requirements. A further decline is expected after Diwali, and we are also facing labour challenges."

Domestic finished longs stable

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

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

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

Semi-finished prices remain unchanged

Indicative prices for stainless steel semis were at similar levels to last week: SS 304 billets (15 x 15) were priced at INR 165,000-167,000/t ex-Ghaziabad for AOD and INR 145,000-147,000/t for the induction grade.

SS 304 ingots stood at INR 123,000-125,000/t, while SS 316 was at INR 220,000-222,000/t, both ex-Delhi.

Meanwhile, imported SS 304 ingots from Vietnam were at $1,540-1,560/t, and SS 304 billets stood at $1,700-1,720/t CFR Mundra.

Freights from Vietnam to Mundra were at $900-1,100 per 20 ft container.

Imported scrap prices drop

BigMint's benchmark assessment for imported stainless steel 304-grade scrap, originating from the nearshore region, was at $1,400/t, CFR Mundra, down $20/t from $1,420/t last week.

Despite a decrease in imported scrap levels, transactional activities remained on the lower side, majorly due to the slowdown in the market ahead of Diwali.

As per BigMint's assessment, prices of SS 316-grade scrap were at $2,600/t, with suppliers offering the material at $2,630-$2,640/t. Buyers' bids were at approximately $2,570-$2,590/t. Similarly, SS 430 scrap stood at $630/t and SS 201 at $735/t CFR Mundra.

Meanwhile, domestic 304 scrap prices held steady at INR 121,000/t, while SS 316-grade scrap remained range-bound at INR 221,500/t ex-Delhi-NCR on cash payment terms.

Europe faces stainless steel scrap shortage

Europe is experiencing a persistent shortage of stainless steel scrap, leading many EU mills to substitute it with nickel pig iron and slabs from Asia. This situation has prompted recycling associations to raise concerns about sustainability. Meanwhile, demand from Asia kept European scrap prices elevated.

Chinese market remains steady

In China, domestic stainless steel prices head steady w-o-w. Prices of 304-grade CRCs touched RMB 14,500/t ($2,035/t) exw, while FOB prices of 304-grade CRCs were at $2,090/t.

Other updates

• India's Welspun receives zero dumping margin: The US Department of Commerce confirmed that Welspun Specialty Solutions conducted genuine sales of stainless steel bars during the new shipper review period from 1 February to 31 July 2023, with a zero dumping margin effective 24 October 2024, as no comments were received on the preliminary results.
  
  
• Taiwan's Yusco increases prices for Nov'24 deliveries: Yieh United Steel Corp. (Yusco) has announced a price hike for stainless steel products in November, raising 304 cold-rolled and hot-rolled prices by TWD 3,000/t. The adjustments reflect rising raw material costs and higher electricity tags, ending two months of stable pricing in the market.
  
  

Raw materials scenario

• Ferro molybdenum: Indian ferro molybdenum prices dropped by INR 54,500/t ($648/t) this week compared with the previous assessment on 23 October. Price fluctuations occurred, but these were limited to a certain range, mainly due to bid-offer disparities. Notably, prices have been moving within a narrow range of INR 2,550,000-2,650,000/t ($30,324-31,514/t) since 27 September.
  
  
• Ferro chrome: Indian ferro chrome prices (HC, FeCr60%) stood at INR 109,900/t exw-Jajpur, down INR 500/t w-o-w.
  
  

Outlook

Stainless steel prices are expected to decline slightly in the near term due to falling LME nickel levels. Domestic trading activity is likely to remain low to moderate because of upcoming festivities, with participants expecting a demand recovery after Diwali.