India: Stainless steel prices remain stable w-o-w; imported scrap prices drop

• Finished stainless steel prices remain stable
  
  
• No major buying activity seen amid subdued demand
  
  
• Imported scrap prices drop marginally
  
  

In India, finished stainless steel prices have held steady this week amid drop in LME nickel prices and weak buying interest. Scrap prices in the domestic and imported market 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 121,000/t ex-works Delhi, BigMint's assessment reveals.

At the time of reporting, nickel prices on the LME saw a drop by $875/t w-o-w. Nickel prices for 3-month delivery on LME fell by 5% reaching $17,800/t, which was previously hovering around $18,000/t levels. Meanwhile, nickel stocks on LME remained largely stable at 85,650 t.

Scrap market

In the local scrap market, prices for 304 scrap were assessed between INR 120,000-122,000/t ex-Delhi NCR, with cash payment terms. Sources indicate 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, "Despite declining prices, buying activity in the local scrap market remains sluggish. Presently, only mills are actively purchasing domestic scrap due to the elevated prices of imported scrap. This inclination towards local material is strengthened by apprehensions regarding port congestion and escalating freight expenses in Southeast Asia, the primary source of India's stainless steel scrap. Despite these concerns, India has yet to face major disruptions. However, there are expectations that prices of imported scrap from the Southeast Asian region may rise in the near future."

This week, stainless steel imported scrap prices have remained largely stable with minor declines seen. BigMint's assessment indicates prices for 304-grade scrap at $1,420-$1,440/t CFR Mundra.

316-grade scrap stands at $2,650/t CFR Mundra, edging down slightly 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 304 scrap of Middle East-origin stood at $1,450-$1,470/t, while 316 stood at $2,650-$2,670/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 ex-Mumbai.

A pipe manufacturer mentioned, " The buying activity is expected to remain weak as slow market activity is anticipated for the month. Market sources anticipate that India's top stainless steel producer will reduce finished coil prices by at least INR 3,000/t in response to declining nickel prices. "

Finished longs: Indicative levels

In the finished longs segment, price indications for 304 black round bars were heard at INR 174,000-INR 176,000/t exw-Delhi. Additionally, price levels for SS 304 bright bars were heard at INR 197,000-INR 199,000/t ex-Delhi.

A longs manufacturer informed BigMint, "A marginal correction in scrap prices has led to a slight decrease in longs prices, as the prices of long products are largely dependent on scrap prices, which serve as a key raw material in their production."

Indicative offers for SS 304 hexagon stood at INR 208,000-INR 209,000/t and SS 304 angles are at INR 202,000-INR 204,000/t, both ex-Delhi.

China market overview

During the week, China's domestic stainless steel prices remain largely stable w-o-w. Prices of 304 grade CRC reached RMB 14,900/t ($2,056/t) ex-works. FOB prices of 304 grade CRC stood at $2,092/t (down $25/t).

Raw materials scenario

Ferro molybdenum: Ferro molybdenum prices in India experienced a downward adjustment of INR 22,000/t ($263/t) in comparison to the prior assessment on 5 June 2024. Prices still remained within a certain range and the supply-demand dynamics impacted prices.

Indian ferro molybdenum prices were INR 2,760,000/t ($33,031/t) exw-Nagpur on a 60% pro rata basis, according to BigMint's assessment on 12 June.

Ferro chrome: Indian ferro-chrome prices (HC, FeCr60%) stood at INR 106,800/t exw-Jajpur as prices remained largely stable amid subdued demand.

Global updates

Indonesia considers permit termination for nickel smelters amid ore depletion

The Indonesian government is considering terminating permits for RKEF smelters producing ferronickel and nickel pig iron due to rapid depletion of ore reserves, driven by increased downstream investment. Officials aim to prioritize High Pressure Acid Leach (HPAL) smelters for battery-grade nickel production and those producing nickel matte. The fate of existing permits remains uncertain.

Reserves of ore graded above 1.5% are projected to last until 2029 without further exploration. Indonesia, once a major nickel ore exporter, banned unprocessed nickel shipments in 2020 to boost onshore investment. The Indonesia Nickel Miners Association calls for a moratorium on new pyrometallurgy plants to preserve high-grade reserves, crucial for stainless steel and EV battery production.