India: Stainless steel prices recover on firm demand

SteelMint's assessment for Indian 304 grade stainless steel scrap prices recovered to INR 130,000/t ($1,638/t) ex-Delhi today as against INR 128,000/t ($1,527/t) on 4 August. On the other hand, the price of 304 grade HRC ex-Mumbai remains stable at around INR 238,000/t ($2,999/t).

SteelMint learnt from sources that prices have recovered due to improved demand from the Railways and the rice mill segment.

Market highlights

In the domestic stainless steel scrap market, Indian mills' scrap price offers are firm. Buyers are bidding higher prices for stainless steel scrap in comparison with overseas scrap offers, which are currently hovering around $1,620-1,640/t.

Despite volatile LME nickel prices, finished stainless steel prices in India are stable due to strong demand from the Railways, auto and rice mill segments. Some import trades were reported, with a trade price of $2,550/t for POSCO 304 HRC No1.

Following geopolitical tensions between the USA and China, as well as the release of US CPI data, major base metals prices such as that of nickel began to correct. LME nickel 3-month prices fell 2.39% yesterday, and fell another 0.46% in today's trade to $21,520/t.

Ferro alloys prices drop

According to SteelMint's assessment on 4 August, most producers were offering HC60% grade at INR 96,000-97,500/t exw-Jajpur. However, bids were heard at INR 93,000-94,000/t exw-Jajpur. The disparity in bids and offers kept trade activities limited this week.

According to SteelMint's assessment on 4 August, ferro chrome stands at around INR 96,500/t exw-Jajpur.

Outlook

This week began with a surge in stainless steel demand. "We received increased market queries for finished material after a long time," one trader in Ahmedabad told SteelMint. Indian stainless steel prices are expected to remain firm due to recovery in demand and supportive ferro alloys prices, although market participants will be wary of LME nickel price fluctuations which may impact future price variations.