India: Stainless steel prices remain range-bound amid subdued demand, drop in LME nickel

In India, stainless steel prices have remained largely stable this week with minor drops seen for a few grades amid the decline in LME nickel prices. Imported as well as domestic scrap prices remain firm this week.

India's stainless steel (304 series) HRC prices stood at INR 177,000/t ex-Mumbai and domestic 304-grade scrap at INR 120,500/t ex-works Delhi, BigMint's assessment reveals.

At the time of reporting, nickel prices on the LME saw a marginal drop of $440/t w-o-w. Nickel prices for 3-month delivery on LME fell by 3% to $16,700/t, which was previously hovering at around $17,150/t. Meanwhile, nickel stocks on LME stood at 99,576 t.

Scrap market

In the local market, prices for 304 scrap were assessed at INR 120,500/t ex-Delhi NCR, on cash payment terms. Sources indicated that major mills are purchasing 304 scrap at approximately INR 121,000-123,000/t delivered (DAP), with a credit period of 45 days.

A trader informed BigMint, "There has been a notable increase in demand for domestic scrap driven by a preference among major mills and buyers to source locally. The rise in domestic demand is attributed to higher offers for imported scrap, exacerbated by escalating freight rates from Southeast Asia and logistical challenges like port congestion and container shortages."

Currently, freight rates from Southeast Asia to India's west coast are at $200/t or $4,000/20-ft container.

This week, imported scrap prices have remained stable. BigMint's assessment shows prices for 304-grade scrap remaining firm at $1,440/t CFR Mundra. Meanwhile, suppliers are quoting SS 304 scrap at $1,460-$1,480/t, while buyers' bids are slightly lower at $1,400-$1,430/t, creating a gap of $50-$60/t.

316-grade scrap is priced at $2,650/t CFR Mundra, with some suppliers offering it at $2,680-$2,700/t. However, buyers' bids are in the range of $2,630-$2,640/t.

Additionally, SS 201 scrap is offered at $780-$800/t and SS 430 at $660-$680/t CFR Mundra. Buyers are hesitant to purchase SS 304 scrap from Malaysia at the offered price of $1,550/t CFR Mundra.

Finished flat

In the finished flat segment, prices saw a marginal drop this week. As per BigMint's assessment, 304 HRC prices stood at INR 177,000-INR 179,000/t, while prices of SS 316 HRC stood at INR 306,000-INR 308,000/t ex-Mumbai.

According to a source, " The slight price adjustment is due to subdued market demand and the influence of LME nickel prices on finished SS prices, alongside the adjustments made by a leading stainless steel producer for finished coils."

Finished longs: indicative levels

In the finished longs segment, price indications for 304 black round bars were heard at INR 168,000-INR 170,000/t exw-Faridabad. Additionally, prices for SS 304 bright bars were heard at INR 188,000-INR 190,000/t exw-Faridabad.

Indicative offers of SS 316 black round bars were at INR 287,000-INR 289,000/t exw-Faridabad. Additionally, price levels for SS 316 bright bars were heard at INR 307,000-INR 309,000/t exw-Faridabad.

China market overview

During the week, China's domestic stainless steel prices dipped w-o-w. Prices of 304 grade CRC reached RMB 14,550/t ($2,004/t) ex-works. Meanwhile, prices of 304 grade CRC stood at $2,080/t FOB, down $15/t.