India: Stainless steel market stable w-o-w; 316L HRC/CRC prices rise

Stainless steel prices in the India's domestic market remained stable this week. 304 grade stainless steel hot-rolled coils (HRCs) prices ex-Mumbai stood at INR 229,000/t ($2,768/t), while domestic 304 grade stainless steel scrap prices ex-Delhi were assessed at INR 132,000/t ($1,595/t).

However, prices of 316L grade HRCs/CRCs increased by 2.7% w-o-w. The price of 316L HRC was assessed at INR 385,000/t ($4,655/t).

Nickel prices on the London Metal Exchange (LME) fell by 10% from the previous week. LME three-month nickel prices are currently hovering around $27,053/t.

Market highlights

European prices have influenced imported scrap offers into India. "Scrap offers were heard at the $1,680-$1,700/t level, despite mills showing no interest and hearing no major deals," a trader told SteelMint.

"Last week, some deals for 304 scrap were heard at the $1670-80/t levels but prices have corrected since then to $1,640-1,650/t this week," a seller informed.

The finished stainless steel segment remained mostly stable w-o-w. For quite some time, the market has been declining. Last week, one of the major north Indian producers increased 316L selling prices by INR 6,000/t due to a rise in molybdenum and ferro chrome prices.

"In the most recent budget release, railway received the highest ever allocation for development funding, which may assist the stainless steel industry. Rice mills are set to begin operations in the summer, and JT grade will be in high demand." One North Indian mill source said.

Ferro chrome prices rise

Last week, SteelMint assessed ferro chrome prices at the higher levels of around INR 116,500/t exw-Jajpur. According to market participants, prices are expected to rise further this week. A rise in chrome ore prices in China due to strong demand at ports boosted ferro chrome prices in India.

Molybdenum prices increase

Last week, domestic and global ferro molybdenum prices moved up by up to 13% w-o-w. According to SteelMint, the FeMo 60% price has increased to INR 4,412,500/t ($53,391/t).

Outlook

Domestic stainless steel demand has been consistently low in the downstream industry. Furthermore, with rising ferro chrome and molybdenum prices, raw material costs are rising. Market participants are hoping that the government-supported projects like railways and seasonal demand like from rice mills may support the market in the coming months.