India: Stainless steel imported scrap prices inch up w-o-w on firm LME nickel levels

India's imported stainless steel scrap prices have risen by up to $15/t w-o-w, supported by stable LME nickel prices. In contrast, domestic stainless steel scrap prices remained unchanged for the week. Overall market activity continued to be sluggish due to the ongoing festive season.

BigMint's benchmark assessments for stainless steel 304-grade scrap prices stood at INR 121,000/tonne (t) ex-Delhi, while imported 304-grade scrap originating from the nearshore region was priced at $1,445/t, CFR Mundra.

LME nickel price trend

As of the latest report, three-month LME nickel prices stood at $17,850/t, reflecting a slight 0.5% increase from the previous week's price of $17,770/t. At the same time, nickel stocks in LME-registered warehouses increased w-o-w, reaching 132,312 t, up from 131,088 t the week before.

Additionally, nickel prices on the Asian SHFE rose by 1% w-o-w, reaching RMB 132,390/t from the previous week's RMB 131,070/t. Notably, as of 11 October 2024, nickel ore inventory at Chinese national ports rose by 450,000 wet tonnes from 27 September, reaching 9.922 million wet tonnes, with an equivalent metal content of 77,890 t. In the Philippines, loading work for ships arriving in September remains incomplete. However, the number of ships dispatched this week has significantly increased compared to the last week, and this trend is expected to continue through the end of the month.

Scrap market insights

Imported scrap prices rose this week, despite a lack of buying interest in the market. The main factor behind the slowdown in demand, particularly for imported scrap, is the increasing prices of the material.

As per BigMint's assessment, the current price levels of SS 316-grade scrap was priced at $2,650/t (up $10/t), with suppliers offering it at $2,660-$2,680/t. Buyers' bids were at approximately $2,620-$2,630/t. Similarly, SS 430 scrap is priced at $655/t (up $15/t) and SS 201 is priced at $760/t (up $10/t), CFR Mundra.

A trader said: "Offer prices for imported material are on the higher side, resulting in limited inquiries for this segment. As a result, a decline in the import volume of stainless steel scrap is expected for September and October. "

This week, domestic 304 scrap prices held steady at INR 121,000/t, while SS 316-grade scrap remained at INR 221,000/t ex-Delhi NCR, on cash payment terms. Sources noted that major mills are purchasing 304 scrap around INR 123,000-125,000/t delivered (DAP), with a credit period of 30-45 days.

A finished longs manufacturer said: "Demand in the longs segment remains weak, and scrap procurement has slowed down. The market is currently only partially active, with activity subdued due to the ongoing festivities, as participants are in holiday mode for the Dussehra celebration."

Upcoming tender updates for SS scrap

Hero Moto Corp Ltd. is set to auction approximately 40 t of stainless steel scrap 409L from its Haridwar unit in Uttarakhand. The auction will take place on 16 October.