India: Stainless steel HRC prices rise following hikes by major producers
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India's stainless steel hot-rolled coil (HRC) prices rose w-o-w, following an INR 3,000/tonne (t) hike by major coil manufacturers, the first price hike in October 2024. In contrast, cold-rolled coil (CRC) prices remained stable. However, market demand was relatively weak, and transactional activities were low to moderate.
BigMint's benchmark assessments for stainless steel (304 series) HRC prices stood at INR 186,000/t ex-Mumbai.
LME nickel price trend
At the time of reporting, three-month LME nickel prices were at $17,710/t, a 3% decrease from the previous week's $18,270/t. Meanwhile, nickel stocks at LME-registered warehouses rose marginally to 131,850 t from 131,178 t the previous week.
Additionally, nickel prices on the Asian SHFE remained stable today, following a notable increase of nearly 2% on the previous day. European nickel prices also opened steady. Despite market expectations for more information regarding the Chinese government's financial policy measures, nickel prices showed considerable resilience.
Domestic finished flat segment
In the finished flat segment, prices saw an increase this week, particularly in the HRC segment. According to BigMint's assessment, 304 HRC prices stood at INR 185,000-187,000/t, while SS316 HRC was at INR 322,000-324,000/t ex-Mumbai.
A source stated, "Market prices remain stable due to a price increase by a major coil manufacturer. However, despite this rise, trade levels and demand are still low. Additionally, activity has significantly slowed down because of the Navratri festival."
A deal for 120 t of SS 316 CRC was heard at INR 332,000/t, ex-Mumbai. Another deal for 100 t of SS 304 CRC was heard concluded at around INR 192,000/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 169,000-171,000/t exw-Mumbai, while SS 316L black round bars were offered at INR 284,000-286,000/t exw-Mumbai.
Indicative prices of SS 304 wire rods (5-16 mm) in Mumbai were reported at INR 167,000-169,000/t.
Additionally, the FOB Nhava Sheva prices of 304 bright bars (20-100 mm) were at $2,420-2,440/t, while 316 bright bars (20-100 mm) were priced at $4,020-4,040/t.
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 ($2,051/t) exw, while FOB prices of 304-grade CRCs were at $2,055/t.
This is also reflected in the slight increase in Chinese nickel pig iron offers and Chinese stainless steel scrap (304-grade) prices.
Raw materials scenario
Ferro molybdenum: Indian ferro molybdenum prices rose INR 50,000/t ($595/t) w-o-w, compared to the previous assessment on 1 October, driven by key global factors such as China's stimulus measures and geopolitical tensions.
According to BigMint's assessment on 9 October, ferro molybdenum prices in India were at INR 2,600,000/t ($30,965/t) exw (60% pro-rata basis).
Ferro chrome: Indian ferro chrome prices (HC, FeCr60%) stood at INR 111,000/t exw-Jajpur, down by INR 300/t w-o-w.
Outlook
Stainless steel prices are anticipated to stay within a narrow range in the short term, driven by weak domestic demand. Domestic trading activity is expected to remain low to moderate due to the upcoming festivities. Furthermore, global nickel prices on the LME may experience fluctuations in the coming weeks.