India: Stainless steel prices remain stable w-o-w amid scrap shortage

Domestic stainless steel prices in India remained stable this week. Prices of 304-grade hot-rolled coils (HRCs) were at INR 205,000/t ($2,493/t) exw. The 304-grade scrap prices also remained stable w-o-w at INR 128,000/t ($1,557/t) ex-Delhi.

Three-month nickel futures on the London Metal Exchange (LME) inched up w-o-w and were hovering at around $25,633/t. Ferro molybdenum prices increased by around 1% w-o-w.

Market overview

Sources informed that the Indian market is currently experiencing a shortage in domestic scrap supply, resulting in the steady price levels. Conversely, the domestic 316 scrap ex-Delhi price declined due to drop in raw material prices.

However, the finished stainless steel sector continued to face pressure compared to the previous week, with further price reductions seen in the domestic market.

Imported scrap prices remained steady, ranging between $1,550-$1,570/t for the 304 grade. Some mills began to offer lower prices due to decrease in global molybdenum prices. However, no deals have been reported at the quoted prices.

Ferro alloys prices slip

Indian ferro chrome (HC60%) prices fell by INR 3,000/t w-o-w to INR 101,500/t ($1,235/t) exw-Jajpur due to weak demand in both local and international markets.

Domestic ferro molybdenum prices inched down by 1% w-o-w. Prices of FeMo 60% material stood at INR 25,25,000/t ($30,716/t).

Outlook

This week, the domestic market for stainless steel remained steady without significant fluctuations. Market players are anticipating a rebound in demand, because the market has not shown the expected signs of recovery since mid-April. The focus remains on near-term performance of the global stainless steel market.