India: Stainless steel market shows mixed trend w-o-w

The stainless steel market in India has experienced significant volatility recently, primarily due to a decrease in demand for finished materials, an ample supply, and a slight increase in futures.

Furthermore, a shortage of funds significantly contributes to the subdued state of this market.

SteelMint's assessment indicated that the 304 HRC is presently at INR 173,000/t. Meanwhile, the domestic scrap prices of 304-grade scrap at INR 113,000/t, ex-Delhi, remained largely stable compared to the previous week.

Meanwhile, imported material is more cost-competitive, and the 304-grade HRC is available at INR 162,000/t, whereas 316 HRC is at INR 296,000-300,000/t, respectively.

Offers for the 304-grade scrap were at around $1,340/t CIF Mundra, but fell by $25/t w-o-w. Meanwhile, 316 scrap was heard at $2,485/t CFR Mundra from nearshore origins. For imported 430 and 201 scrap, it is around $650/t and $770/t, respectively.

Market participants shared with SteelMint that while there is still demand in India, global demand remains limited. Moreover, India's market activity is predominantly driven by necessity-based purchases.

A prominent player in the stainless steel mill industry has increased prices for its 316 series by INR 4,000/t for both HRC and CRC. This move has injected some energy into the 300 series, which experienced a slight slowdown in the preceding weeks, according to a market source.

Turning to China, stainless steel prices have remained relatively stable across all series, as procurement needs were largely fulfilled before the holiday season. In northern China, numerous projects have been put on hold, resulting in a lack of sales activity and order placements.

Additionally, several companies will be on holiday this week. As for the 200 and 400 series, the supply is tight due to maintenance work at some mills, leading to a shortage of certain types of stainless steel. However, transactions in this segment remain lackluster. Currently, the 304-grade CR prices stand at $2,094-2,096/t, FOB China, stable w-o-w.

Raw material market

• Ferro chrome: Indian ferro chrome prices (HCFeCr60%) remained range-bound w-o-w as market players are in a wait-and-watch mode, with trade being carried out only when necessary. According to SteelMint's assessment, high-carbon ferro chrome (HC60%, Si:4%) prices stood at INR 112,700/t exw-Jajpur.
  
  
• Ferro molybdenum: Indian ferro molybdenum prices decreased by 4.6% w-o-w to INR 2,348,000/t exw-Nagpur, on a 60% pro rata basis, producers reported that they had sufficient amounts of material in stock.
  
  
• LME nickel: The nickel LME (London Metal Exchange) prices increased w-o-w. Three-month nickel futures on the LME were down by 0.46% w-o-w and are currently hovering at $16,240/t. Notably, the nickel stock in LME warehouse is at its highest in the last seven months, to around 69,100 t.
  
  

Outlook

Market participants expect a further price correction in the finish material in the upcoming week due to bearish demand.