India: Stainless steel prices majorly stable w-o-w amid LME Ni downtrend, weak demand
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In India, finished stainless steel prices have maintained stability this week on declining LME nickel prices and weak buying interest. Scrap prices in the domestic and imported markets witnessed a slight drop w-o-w. India's stainless steel (304 series) HRC prices stood at INR 179,000/t ex-Mumbai and domestic 304-grade scrap prices stood at INR 120,000/t ex-works Delhi, BigMint's assessment revealed.
At the time of reporting, nickel prices on the LME saw a drop by $475/t w-o-w. Nickel prices for 3-month delivery on LME fell by 5% reaching $17,325/t, which was previously hovering around $17,800/t levels. Meanwhile, nickel stocks on LME stood at 89,442 t.
Scrap market
In the local scrap market, prices of 304 scrap were assessed between INR 119,000-121,000/t ex-Delhi NCR, with cash payment terms. Sources indicated that key mills are acquiring 304 scrap at around INR 123,000-125,000/t DAP, with a credit period of 45 days.
A trader informed BigMint, "Buying interest in India's local scrap market remains low despite lower prices. Mills are focusing on domestic scrap due to expected high costs of imported scrap from Southeast Asia, exacerbated by worries about port congestion and increasing freight charges. Southeast Asia accounts for approximately 45% of India's scrap sources. "
This week, stainless steel imported scrap prices have remained largely stable. BigMint's assessment indicated prices of 304-grade scrap at $1,430-$1,450/t CFR Mundra.
316-grade scrap stands at $2,650/t CFR Mundra, edging down by $10/t w-o-w. Meanwhile, a few suppliers were heard offering 316-grade scrap at $2,680/t levels. However, buyers' bids were heard in the range of $2,620-$2,630/t.
Offers of SS 201 scrap stood at $780-$790/t, while SS 430 stood at $630-$640/t CFR Mundra.
Finished flat segment
As per BigMint's assessment, 304 HRC witnessed stability w-o-w at INR 179,000/t and prices of SS 316 HRC stood at INR 310,000/t ex-Mumbai.
A pipe manufacturer mentioned, " Buying activity is forecasted to stay subdued with expectations of sluggish market conditions for the month ahead. Market sources predict that India's leading stainless steel producer will likely decrease prices for finished coils in response to the decline in nickel prices. "
Finished longs: indicative levels
In the finished longs segment, price indications for 304 black round bars were heard at INR 170,000-INR 173,000/t exw-Delhi. Additionally, price levels for SS 304 bright bars were heard at INR 191,000-INR 193,000/t ex-Delhi.
Indicative offers of SS 304 hexagon stood at INR 202,000-INR 203,000/t and SS 304 angles are at INR 196,000-INR 197,000/t, both ex-Delhi.
China market overview
During the week, China's domestic stainless steel prices edged down w-o-w. Prices of 304 grade CRC reached RMB 14,800/t ($2,039/t) ex-works. FOB prices of 304 grade CRC stood at $2,088/t.
Chinese stainless steel prices, both domestically and for exports, have declined due to reduced summer demand and increased production. Chinese mills' higher operation rates have boosted supply, leading to inventory buildup and lower prices, exacerbated by weak nickel prices in global markets.
Raw materials scenario
Ferro molybdenum: Indian ferro molybdenum prices rose by INR 60,000/t ($719/t) w-o-w in comparison to the previous assessment on 12 June. Prices went up in response to an increase in offers from sellers and the continued crunch in molybdenum oxide supplies.
According to BigMint assessment on 19 June, Indian ferro molybdenum prices stood at INR 2,820,000/t ($33,784/t) exw-Nagpur on a 60% pro rata basis.
Ferro chrome: Indian ferro-chrome prices (HC, FeCr60%) stood at INR 109,300/t exw-Jajpur, prices were slightly up by INR 2,500/t w-o-w.
Outlook
Current market signals indicate a possible decline in stainless steel prices, influenced by fluctuating LME nickel prices and expected reductions from India's leading stainless steel producer. This could lead to price corrections in the coming weeks.
