India: Stainless steel flats prices decline by up to INR 4,000/t on weak demand, falling LME nickel

India's stainless steel finished flat prices have slid by up to INR 4,000/t primarily driven by weak demand and decline in LME nickel price levels. Meanwhile, transactional activities were at 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 $17,370/t, a 2% decrease from the previous week's $17,710/t. Meanwhile, nickel stocks at LME-registered warehouses rose marginally to 133,284 t from 131,850 t in the previous week.

Domestic finished flat segment

In the finished flat 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.

A source stated, "Market prices have significantly fallen due to weak demand. Since the Dussehra holidays, the market has yet to regain momentum. Additionally, LME nickel prices have declined from last week's $18,000/t. Most market participants are hopeful of an improvement after Diwali, though they are uncertain about how substantial that recovery will be."

A deal for 50 t of SS 316 CRC was heard at INR 329,000/t, ex-Mumbai. Another deal for 50 t of SS 304 CRC was heard concluded at around INR 189,000/t, ex-Mumbai.

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.

A longs manufacturer said, "The market is mainly working on need-based buying. In the recent months, long positions have faced challenges, as demand remains focused solely on necessity."

Taiwan-EU trade dynamics

Demand for finished products in the EU region has declined, resulting in a substantial drop in shipments for Taiwanese stainless steel exporters last month, reflecting the overall decrease in EU demand in recent months. Import volumes have remained steady. The main factor behind this sharp decline is significantly reduced purchasing activity in Europe, particularly in Italy.

China market

In China, domestic stainless steel prices were up marginally w-o-w, following a resumption in market activity after the Golden Week holidays. 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.

China's crude stainless steel production declined in September, yet the decrease was not sufficient to balance supply with demand. The local market remained sluggish, marked by low purchasing activity. In September, Chinese manufacturers produced 3.31 mnt, down 4.4% from August, with reductions across all categories.

Other updates

Japanese stainless steel producer NSSC has announced a slight price reduction for nickel- and chromium-based flat products due to declining raw material costs. For October contracts, prices for SUS304 cold-rolled thin sheets decreased by JPY 5,000/t, reflecting a JPY 10,000/t increase in base prices and a JPY 15,000/t decrease in alloy prices.

YC Inox begins production of sanitary tubes in Turkiye plant

YC Inox Co Ltd, a Taiwanese stainless steel producer, has announced that its steel pipe plant in Turkey is now producing EN 10357 stainless steel sanitary tubes for the food, pharmaceutical, and chemical industries. This facility is the only manufacturer in Turkey utilising pickling and passivation processes for this standard. Additionally, the plant produces 300 series stainless steel welded pipes (ASTM A554, EN 10217-7), while a nearby coil service centre has a monthly capacity of 4,000 tons for 300 and 400 series flat products.