India: Stainless steel prices inch up on increasing enquiries, higher futures
...
The stainless steel market has experienced a slight increase in activity, with a rise in enquiries for finished material amid an uptrend in LME futures prices. BigMint's assessment indicates that the price for 304 HRC is currently at INR 176,000/t, while the 304-grade scrap is assessed at INR 116,000/t exw Delhi, both reflecting an increase of INR 2,000/t compared to the previous week.
In the scrap market, there is a clear preference for domestic material over imports, resulting in higher offers for scrap procurement. Offers for 304 scrap range from INR 116,000-117,000/t, while 316-grade scrap is priced at around INR 210,000-215,000/t ex-Delhi.
On the other hand, the imported scrap market is facing a lack of buyers, with most mills showing disinterest in the current market conditions. As per BigMint assessment, 304-grade scrap is priced at around $1,340/t CIF Mundra. Additionally, 316 scrap has been reported at $2,500/t CFR Mundra, largely stable w-o-w.
Imported materials are reportedly being directed towards European countries where sellers are able to secure better value.
A key player in the stainless steel market has raised prices for 304 and 316 series HRC and CRC by INR 3,000/t, although the full impact on the market is expected to unfold gradually.
Raw materials
Ferro chrome: Indian ferro chrome prices (HCFeCr60%) stood at INR 121,000/t exw-Jajpur. Prices remained range-bound last week, as no major deals were reported because market participants sought more clarity on prices.
Ferro molybdenum: Indian ferro molybdenum prices witnessed a w-o-w decrease of INR 20,000/t. BigMint's assessment for ferro molybdenum stands at INR 2,430,000/t exw-Nagpur, calculated on a 60% pro rata basis.
LME nickel: Nickel prices on the London Metal Exchange (LME) increased w-o-w. Three-month nickel futures on the LME rose by 4.4% w-o-w and are currently hovering at $17,430/t. Notably, nickel stocks in LME warehouses are at 70,360 t, down by 574 t w-o-w.
Outlook
A positive outlook is anticipated in the domestic market due to a slight increase in demand and the pricing adjustments made by a major player.
