India: Stainless steel prices stable with small corrections
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The stainless steel market is facing slow demand as there are fewer inquiries for finished materials, despite a slight increase in LME future prices. According to BigMint's assessment, the price for 304 HRC is currently at INR 174,000/t, reflecting a decrease of INR 2,000/t compared to the previous week. Meanwhile, the 304-grade scrap is assessed at INR 114,000/t exw Delhi.
Domestic scrap market witnesses marginal price hike
In the domestic scrap market, mid-sized mills have maintained higher offers for scrap procurement. Buying offers for the 304 scrap range from INR 114,000/t to INR 116,000/t, while 316-grade scrap is priced at around INR 203,000/t to INR 210,000 on a credit basis.
In contrast to the domestic scenario, the imported scrap market has experienced a lack of buyers, with most mills showing disinterest in booking material in the current market. This week, as per BigMint assessment 304-grade scrap is priced at around $1,340/t CIF Mundra, marking a $5/t decrease. Additionally, 316 scrap has been reported at $2,505/t CFR Mundra, indicating a $20/t decrease w-o-w. Bid prices for the 201 scrap grade were heard in the range of $740-760/t, while 430 scrap is at $630-650/t.
According to one buyer, "There is an abundant supply of scrap for 304 and 316, leading to a slight correction in imported prices, surpassing current demands."
Finish segment awaits demand recovery
The market for stainless steel finish is currently witnessing a sluggish trade pace. Imported Cold Rolled Coils (CRC) are presently priced at least 10 rupees lower than those offered by major domestic flat producers. Trades involving imported 304 HRC are being concluded in the range of INR 165,000/t to INR 170,00/t, despite lingering quality concerns.
Shifting our focus to China, demand for the 300 series remains subdued post-holidays, with downstream users operating at reduced capacity. In contrast, prices for 201 HR products within the 200 series have risen due to limited stock availability. Traders dealing with the 400 series are exercising caution and are inclined to maintain prices at their current levels. As of now, 304-grade CR prices stand at $2,102/t, FOB China.
Raw material market
Ferro chrome: Indian ferro chrome prices (HCFeCr60%) stood at INR 121,000/t exw-Jajpur. Prices remained range-bound last week as market participants awaited for the results of OMC's auction to gain price clarity.
Ferro molybdenum: Indian ferro molybdenum prices witnessed a w-o-w increase of INR 40,000/t, due to a global price hike, directly impacting domestic prices. BigMint's assessment for ferro molybdenum stands at INR 2,430,000/t exw-Nagpur, calculated on a 60% pro rata basis.
LME nickel: Nickel prices on the London Metal Exchange (LME) increased w-o-w. Three-month nickel futures on the LME up by 2% w-o-w and are currently hovering at $16,685/t. Notably, nickel stocks in LME warehouses are at 70,360 t, inched down by 1,650 t w-o-w.
Outlook
Looking forward, it is expected that prices in the domestic market may remain within a certain range, due to low demand in the finished segment.
