India: Stainless steel flats remain stable; longs dip as market struggles post-New Year

• Market fails to pick up post New Year
  
  
• LME nickel prices rise on Chinese pre-holiday stocking
  
  

India's finished stainless steel prices stayed stable in the flats segment, while long products fell by INR 4,000/t w-o-w due to weak demand and limited buying as the market struggled post New Year. Meanwhile, LME nickel prices edged up by 1% over the week.

LME nickel prices rise

At the time of reporting, three-month LME nickel prices were at $15,450/tonne (t), up by 1% from the previous week's $15,328/t. Meanwhile, nickel stocks in LME-registered warehouses inched up by 2% w-o-w to 165,366 t from 160,536 t last week.

Nickel prices rose this week due to a weaker US dollar and increased pre-Lunar New Year buying activity. Despite rising LME inventories, the market remains supported by high nickel mining costs. Volatility is expected in the short term, with ongoing market uncertainty, including potential tariff changes, influencing the outlook. Strong demand from downstream sectors continues to drive prices higher.

Domestic finished flats steady w-o-w

BigMint's benchmark assessments for stainless steel (304 series) HRCs showed w-o-w stability at INR 178,000/t ex-Mumbai. Similarly, the SS316 hot-rolled coils (HRCs) were priced at INR 322,000-324,000/t ex-Mumbai.

A source informed, "Demand for finished goods remains weak, with market participants holding off on active scrap procurement until demand improves. Despite this, finished inventory levels are being well-maintained."

Finished longs drop w-o-w

BigMint's benchmark assessment for SS 304L (25-100 mm) black round bars was at INR 172,000/t ex-Mumbai, dropping INR 4,000/t w-o-w.

Meanwhile, SS 316L black round bars stood at INR 281,000-283,000/t ex-Mumbai. Prices of SS 316L bright bars stood at INR 302,000-304,000/t ex-Mumbai, down w-o-w.

SS 304 wire rods (5-16 mm) in Mumbai were recorded at INR 157,000-159,000/t, reflecting a drop of INR 1,000/t w-o-w.

Chinese prices steady

In China, domestic prices of stainless steel 304-grade cold-rolled coils (CRCs) stood at RMB 13,700/t ($1,868/t) exw, steady w-o-w, while FOB tags were at $1,974/t.

Global updates

Walsin Lihwa plans EUR 60.5 million investment

Walsin Lihwa, a Taiwanese stainless steel manufacturer, has approved an investment of EUR 60.5 million into its Italian subsidiary, Cogne Acciai Speciali S.p.A. (CAS). The capital will be injected via its Luxembourg subsidiary, Walsin Lihwa Europe. This investment will increase Walsin Lihwa's indirect stake in CAS from 70% to 71.83%. Additionally, a cash capital increase to repay loans was also approved.

EU stainless steel manufacturers rely heavily on imports

European stainless steel manufacturers advocate stricter market protection against non-EU imports, despite being major importers themselves. As per secondary sources, imports have increased: ferro-nickel (+42%), stainless steel scrap (+50%), slabs (+27%), and nickel pig iron by nearly 60,000%. Stainless steel slab imports hit 330,000 t, the highest since 2008. The EU heavily relies on imports due to insufficient domestic production, raising concerns over anti-dumping policies and allocation of free emission allowances, which granted EU steelmakers over Euro 56 billion in subsidies since 2005.

Raw materials scenario

Ferro molybdenum: Indian ferro molybdenum prices were largely stable last week, going down slightly by INR 4,250/t ($50/t) as compared to the previous assessment on 1 December. Stable prices globally and on LME kept market conditions static last week.

As per BigMint's assessment on 8 January, ferro molybdenum prices in India were INR 2,501,750/t ($29,141/t) exw-India.

Ferro chrome:Indian high-carbon ferro chrome (HC60%, Si:4%) prices stood at INR 99,300/t, down INR 2,800/t w-o-w.