India: Stainless steel prices dip on falling demand, raw material prices

In the domestic stainless steel market, prices have been on a continuous downtrend due to decreasing raw material prices and sluggish local demand. SteelMint assessments show that 304-HRC scrap is currently priced at INR 204,000-206,000/t ($2,452-2,476/t), while the 316 grade HRC is in the range of INR 352,000-355,000/t ($4,230-4,266/t) exw-Mumbai.

The domestic scrap market has witnessed subdued trading activity recently, especially for 304 and 316 scrap, reflecting reduced demand. On a global scale, the stainless steel market has experienced volatility, with imported 304-grade scrap priced at approximately $1,430-1,460/t CFR and 316-grade scrap at about $2,750-2,760/t CFR Mundra during this period.

One key factor contributing to market uncertainty is the ongoing closure of the Chinese market, leaving mills unsure about their pricing strategies. Nonetheless, sources suggest that China's stainless steel scrap prices are at around $1,400-1,420/t CFR.

In contrast, Rimjhim Ispat has released its current stainless steel prices, with their 304 HR priced at around INR 198,000/t and INR 208,000/t for CR. Additionally, their 316 HR is priced at approximately INR 343,000/t, and for CR, it stands at around INR 353,000/t.

Furthermore, reports indicate that approximately 100 tons each of South America-origin 304 scrap and 316 scrap were traded at $1,430/t and $2,750/t respectively, CIF Spain.

Raw material costs:

Ferro chrome: Indian ferro chrome (HC60%, Si:4%) prices fell by 1.4% due to reduced trades as buyers are holding back and booking material as needed. Prices stood at INR 119,800/t exw-Jajpur.

Ferro molybdenum: Prices of Indian ferro molybdenum (FeMo60%) rose by 8% in August, reaching around INR 2,795,000/t ex-Plant Nagpur. Prices decreased because there was enough supply in the market and a reasonable level of demand.

Outlook

It is anticipated that the market might continue to experience a decline, primarily in response to constrained demand and diminishing futures.