India: Stainless steel prices hold steady w-o-w as market witnesses year-end slowdown

India's finished stainless steel prices remained largely unchanged w-o-w, due to weak demand and limited buying activity. Despite the sluggish market conditions, prices for stainless steel flats and longs remained steady. Furthermore, LME nickel prices showed no significant movement over the week.

LME nickel prices stable

At the time of reporting, three-month LME nickel prices were at $15,465/tonne (t), steady from the previous week's $15,495/t. Meanwhile, nickel stocks in LME-registered warehouses were marginally stable w-o-w to 162,048 t from 161,718 t last week.

Domestic finished flats steady w-o-w

In the domestic finished flats segment, prices remained stable for the week. According to BigMint's assessment, SS316 HRCs were at INR 322,000-324,000/t ex-Mumbai.

BigMint's benchmark assessments for stainless steel (304 series) hot-rolled coils (HRCs) showed w-o-w stability at INR 178,000/t ex-Mumbai.

A source mentioned, "Demand for finished materials is sluggish, and the domestic market is quiet. While current conditions are stable, many industry participants are hopeful that demand will pick up after the New Year holidays".

Finished longs stable w-o-w

BigMint's benchmark assessment for SS 304L (25-100 mm) black round bars was at INR 178,000/t ex-Mumbai, stable w-o-w.

Meanwhile, SS 316L black round bars stood at INR 289,000-291,000/t ex-Mumbai. Prices of SS 316L bright bars stood at INR 308,000-310,000/t ex-Mumbai, firm w-o-w.

SS 304 wire rods (5-16 mm) in Mumbai were recorded at INR 158,000-160,000/t.

Chinese prices stable

In China, domestic prices of stainless steel 304-grade cold-rolled coils (CRCs) stood at RMB 13,800/t ($1,894/t) exw, steady w-o-w, while FOB tags were at $1,974/t.

Global updates

Vietnam lifts AD duties, boosting stainless steel exports

Vietnam's removal of anti-dumping duties on cold-rolled stainless steel from China, Taiwan, Malaysia, and Indonesia in late October 2024 has significantly boosted exports. Taiwan's exports to Vietnam rose by 39% in November, while China saw a 23% m-o-m increase. Vietnam became China's largest export market for stainless steel in November.

China's stainless steel imports decline, exports surge

China's stainless steel imports fell by 3.73% y-o-y to 1.74 mnt in January-November 2024. November imports dropped 1.82%, with a notable decrease from Indonesia. However, exports surged by 22.96% y-o-y, totaling 4.58 mnt for the first eleven months. Net exports in November rose 37.62%, further highlighting strong export growth.

Raw materials scenario

Ferro molybdenum: As per BigMint's assesment India's ferro molybdenum prices declined by INR 27,000/t to INR 2,510,000/t exw-India since the previous assessment on 18 Dec'24.

Market activity remained stable, with approximately 36 t traded within INR 2,430,000-2,540,000/t exw. LME futures showed little movement w-o-w, indicating overall steadiness in the market.

Ferro chrome: Indian high-carbon ferro chrome (HC60%, Si:4%) prices fell by INR 1,500/t ($18/t) as compared to the previous assessment on 18 December.

Additionally, prices reached their lowest point in last 4 months due to widening gaps in bids and offers along with lower bids fetched in recent Vedanta-FACOR's ferro chrome auction.

Outlook

The market remains quiet with minimal activity, but participants expect demand to pick up after January 2025. Most industry players anticipate a rebound post-New Year, leading to increased activity and potential price adjustments as demand strengthens.