India: Stainless steel prices remain stable amid soft demand

The Indian stainless steel market has remained relatively stable this week compared to last week, as raw material prices continue to fluctuate amid shortage of materials coupled with weak demand. Prices of 304 grade hot-rolled coils (HRCs) remained steady at INR 208,000/t ($2,505/t) ex-works. Prices of 304 grade scrap in Delhi fell slightly by INR 1,000/t w-o-w, now standing at INR 131,000/t ($1,577/t).

Limited trading activities were observed in the western region of India due to the ongoing Ganesh Chaturthi festival, according to a source.

Imported stainless steel is becoming a more attractive option for buyers compared to domestic material, although imports remain limited. Industry experts have noted that imported 316 scrap is currently valued at approximately $2,780-2,820/t, while 304 scrap is priced at $1,470-1,490/t CFR Mundra.

In an effort to boost stainless steel production, the government of Odisha has introduced a unique investment scheme. This initiative offers investors a 20% capital subsidy, exemptions from electricity duties, support in land allocation, and full reimbursement of Employee State Insurance (ESI) and Employee Provident Fund (EPF) contributions for up to five years.

These incentives have been designed to stimulate growth and encourage innovation within the stainless steel sector in the region.

Raw materials overview

• Ferro chrome: Due to resistance against higher offers and production costs and lower prices in the Chinese market, Indian high-carbon ferro chrome (HC60%, Si:4%) prices remained largely stable at INR 127,000/t exw Jajpur. On the other hand, buyers preferred to bargain and were hesitant to pay higher prices. Meanwhile, small producers have started booking material at lower rates compared to prevailing offers to maintain cash flow.
  
  
• Ferro molybdenum: Indian ferro molybdenum prices decreased by INR 51,000/t w-o-w to INR 2,190,000/t exw Nagpur on 60% pro rata basis, as per SteelMint assessment.
  
  
• LME nickel: Three-month nickel futures on the London Metal Exchange (LME) decreased slightly by 3.88% w-o-w to $19,915/t.
  
  

Outlook

Sources are expecting the market to witness improve levels of trade driven by a slight lift in seasonal demand and modest prices.