India: Stainless steel prices stay firm w-o-w as market slows down amid New Year festivities

• LME nickel prices drop by 1% w-o-w
  
  
• Extended credit cycles pressure mills
  
  

India's finished stainless steel prices remained mostly stable w-o-w, amid weak demand and limited buying activity. Despite sluggish market conditions, prices of stainless steel flats and longs held steady. However, London Metal Exchange (LME) nickel prices saw a slight decline of 1% over the week, reflecting a slight downtrend in the market.

LME nickel prices fall

At the time of reporting, three-month LME nickel prices were at $15,300/tonne (t), down by 1% from the previous week's $15,465/t. Meanwhile, nickel stocks in LME-registered warehouses dropped by 1% w-o-w to 160,536 t from 162,048 t last week.

Domestic finished flats steady w-o-w

In the domestic finished flats segment, prices remained stable w-o-w. According to BigMint's assessment, SS316 hot-rolled coils (HRCs) were at INR 322,000-324,000/t ex-Mumbai.

BigMint's benchmark assessments for stainless steel (304 series) HRCs showed w-o-w stability at INR 178,000/t ex-Mumbai.

A source stated, "The market remains quiet, with limited demand and minimal activity as we enter the new year. Mills are facing difficulties with delayed payments due to extended credit cycles, adding further strain."

Finished longs drop w-o-w

BigMint's benchmark assessment for SS 304L (25-100 mm) black round bars was at INR 176,000/t ex-Mumbai, stable w-o-w.

Meanwhile, SS 316L black round bars stood at INR 285,000-288,000/t ex-Mumbai. Prices of SS 316L bright bars stood at INR 306,000-308,000/t ex-Mumbai, firm w-o-w.

SS 304 wire rods (5-16 mm) in Mumbai were recorded at INR 158,000-160,000/t.

Chinese prices stable

In China, domestic prices of stainless steel 304-grade cold-rolled coils (CRCs) stood at RMB 13,700/t ($1,876/t) exw, dropping by RMB 100/t ($13/t) w-o-w, while FOB tags were at $1,974/t. Both were largely stable w-o-w.

Global updates

Outokumpu announces Jan'25 alloy surcharges

Outokumpu, a major European stainless steel producer, revealed its alloy surcharges for January 2025. The surcharge for 304 (EN 1.4301) is EUR 2,115/t, up by EUR 51/t. For 316L (EN 1.4404), it is EUR 3,504/t, having risen by EUR 58/t. The surcharge for 430 (EN 1.4016) is EUR 1,069/t, having increased by EUR 30/t.

China's stainless steel imports fall, exports rise in Nov

China's stainless steel imports dropped to 137,000 t in November, down 17.9% m-o-m and 12.2% y-o-y. Imports from Indonesia fell sharply by 26.2% m-o-m. Conversely, exports rose to 482,000 t, up 2.7% m-o-m and 25% y-o-y, with notable increases in shipments to Europe and Brazil. However, exports are expected to decline in December due to year-end stockpiling and trade barriers.

Raw materials scenario

Ferro molybdenum: Indian ferro molybdenum prices remained largely stable w-o-w, inching down by INR 4,000/t ($47/t) in comparison to the previous assessment on 24 December. Prices were steady, as market sentiments were unchanged due to limited activity during the year-end.

Ferro chrome: Indian high-carbon ferro chrome (HC60%, Si:4%) prices dropped by INR 1,400/t ($18/t) w-o-w to a four-month low.

The decline was driven by widening bid-offer gaps and lower bids at recent auctions, including those by the Odisha Mining Corporation (OMC) and Vedanta-FACOR. In China, Tsingshan reduced its January tender price by RMB 400/t.

Outlook

Market participants are hopeful for a demand rebound after January 2025 and expect improved activity and potential price adjustments. Cautious optimism surrounds the New Year period, with expectations for a recovery in the coming months.