India: Stainless steel prices stable; demand remain bearish

The stainless steel market in India has witnessed fluctuations in recent weeks, as a decline in demand has led to generally steady prices. Prices for 304-grade hot-rolled coils (HRCs) have slightly to INR 198,000/t ($2,415/t) exw, while 304-grade scrap prices remain steady w-o-w at INR 129,000/t ($1,573/t) ex-Delhi.

Three-month nickel futures on the London Metal Exchange (LME) slumped w-o-w. Three-month nickel futures were hovering at around $20,305/t, a fall of around 10% w-o-w. Notably, nickel and ferro molybdenum are the key raw materials used in stainless steel production.

Finished sales remain subdued

The stainless steel market in India experienced sluggish demand this week, leading to largely stable prices. Sources reported that prices of imported scrap for 304-grade steel were within the range of $1,460-$1,480/t, down $40/t w-o-w.

On the domestic front, the finished stainless steel market saw limited buying enquiries, which contributed to further price volatility. Additionally, rains are impacting trading activities slightly and major producers have cut their production levels to around 70%.

A manufacturer source highlighted that there is relatively higher interest among buyers for Chinese cargoes due to lower prices compared to domestic material.

Ferro alloys market overview

Prices of Indian ferro chrome (HC 60%) have continued to fall this week, decreasing by INR 1,100/t. This drop can be attributed to an abundance of material in the domestic market. As per SteelMint's assessment on 22 June, prices of Indian ferro chrome were around INR 109,100/t, ex-warehouse Jajpur.

Most deals were concluded in the range of INR 109,000-110,350/t. The recently held chrome ore auction by FACOR on 21 June also reported prices in the same range. Some deals were recorded at even lower prices of INR 108,000/t.

On the other hand, prices of ferro molybdenum (FeMo 60% material) stood at INR 26,62,500/t ($32,476/t), showing a slight increase of 1.4% w-o-w.

Outlook

Sources in the finished stainless steel market are anticipating a continued decline in prices due to low demand. However, there is an expectation that demand might see an uptick in the upcoming quarter.