India: Stainless steel market remains stable amid festivals and limited demand

The stainless steel market in India is currently experiencing a range-bound trend due to subdued purchasing activity amid ongoing festivals and a decline in raw material prices. The market is additionally facing pressure as the London Metal Exchange (LME) nickel futures prices drop.

As per SteelMint's assessments, 304-HRC is currently priced at INR 192,000/t ($2,310/t), while the 304-grade CR prices are in the range of INR 205,000/t ($2,467/t) exw-Mumbai, largely stable against last week.

The market has been less active, leading to a scarcity of transactions, as noted by major market participants.

In parallel, the domestic scrap market has maintained relative stability, with the 304-grade scrap being around INR 119,000/t and the 316-grade scrap being around INR 210,000/t, exw-Delhi.

In contrast, bids for imported 304 scrap in India hovered between $1,300-1,320/t while offers were around $1,330-1,340/t, CIF Mundra. As for 316 scrap, it was heard between $2,540-2,560/t CFR Mundra from nearshore.

China, facing slowing downstream demand, witnessed stability in its stainless steel prices for the 304-grade CR at around $2,180-2,220/t, FOB China.

Raw materials overview

• Ferro chrome: Indian ferro chrome prices (HCFeCr60%) fell by INR 1,600/t w-o-w. This decline occurred due to falling demand from end-users. As per SteelMint's assessment of high-carbon ferro chrome (HCFeCr60%) prices stood at INR 104,800/t exw-Jajpur.
  
  
• Ferro molybdenum: As per SteelMint's assessment, Indian ferro molybdenum prices dropped by INR 128,000/t amid weak demand and Diwali holiday disruptions, driven by buyer awareness of delayed material arrivals in transportation, leading to prices at INR 2,312,000/t exw-Nagpur, for 60% moly content.
  
  
• LME nickel: Three-month nickel futures on the LME are currently hovering at around $17,515/t, a slight dip of $285/t was noticed w-o-w.
  
  

Looking ahead, it is anticipated that sluggish demand might continue, potentially leading to further price reductions. Buyers are expected to resume purchases towards the end of the month or the beginning of December 2023, anticipating market stabilization and clearer trends.