India: Stainless steel prices decline w-o-w amid liquidity concerns

• Market liquidity concerns limit trading
  
  
• LME nickel prices drop by 2%
  
  

India's finished stainless steel prices decreased w-o-w, driven by slow trade and weak domestic demand. LME nickel prices dropped this week, while both finished flat and long product prices also saw declines, reflecting persistent liquidity issues in the market.

LME nickel prices drop

At the time of reporting, three-month London Metal Exchange (LME) nickel prices remained largely stable at $15,405/tonne (t), marking a 2% decline from last week's $15,790/t. Meanwhile, nickel stocks in LME-registered warehouses rose by 2% to 173,100 t, compared to 170,214 t in the previous week.

Finished flats drop w-o-w

BigMint's benchmark assessment for stainless steel (304 series) hot-rolled coils (HRCs) stood at INR 179,000/t ex-Mumbai, down by INR 1,000/t. Meanwhile, SS 316 HRCs were priced at INR 320,000-322,000/t ex-Mumbai, stable w-o-w.

Sources stated that "the major issue remains liquidity concerns, with prices staying at the lower end and trading activity being limited."

Finished longs prices decline w-o-w

BigMint's assessment for SS 304L (25-100 mm) black round bars stood at INR 168,000/t ex-Mumbai, down by INR 2,000/t w-o-w.

Meanwhile, SS 316L black round bars stood at INR 278,000-280,000/t ex-Mumbai. Prices of SS 316L bright bars stood at INR 299,000-301,000/t ex-Mumbai, down INR 2,000/t w-o-w.

SS 304 wire rods (5-16 mm) in Mumbai were recorded at INR 155,000-157,000/t, reflecting a drop of INR 2,000/t w-o-w.

According to mill sources, "The credit period in the trader market, which was previously 3-4 days, has now extended to 15-20 days, and, in some cases, up to a month."

Raw material overview

Ferro molybdenum: Indian ferro molybdenum prices remained largely stable, inching down slightly by INR 2,000/t ($23/t) w-o-w in comparison with the assessment on 22 January.

As per BigMint's assessment on 29 January, ferro molybdenum prices in India were at INR 2,518,000/t ($29,080/t) exw.

Ferro chrome: Indian high-carbon ferro chrome (HC60%, Si:4%) prices stood at INR 98,100/t, reflecting a marginal drop of INR 100/t w-o-w.

Outlook

Market participants are closely watching demand shifts following the upcoming Union Budget. Expected policy changes and government spending in infrastructure, energy, and manufacturing could significantly influence market trends and investor sentiment in the coming weeks.