India: Stainless steel scrap, finished prices to rebound on optimism

Stainless steel prices remained stable this week. Domestic 304 grade stainless steel scrap prices were at INR 134,000/t ($1,617/t) ex-Delhi while 304 grade stainless steel HRC prices were at INR 244,000/t ($2,945/t) ex-Mumbai.

At the time of publishing this article, LME's three-months nickel prices rose 4% d-o-d to around $31,300/t.

High LME nickel prices have supported domestic scrap prices, SteelMint notes. On a cash basis, some transactions were heard at INR 133,000/t ($1,605/t) to INR 135,000/t ($1,629/t) on an ex-Delhi basis. "Scrap prices may benefit from rising Ni LME prices, and they should be higher than INR 135,000/t due to higher import prices," a Delhi-based trader told SteelMint.

Meanwhile, the finished steel market started on a positive note. Jindal Stainless, a prominent flat producer, raised 316 grade prices by INR 8,000/t last week. The increase in 316 grade prices is primarily due to an increase in ferromolybdenum prices in both the global and domestic markets.

Ferro chrome prices move up

The bullish export market resulted in an increase in India's domestic ferro chrome prices which stood at INR 2,300/t ($27/t). Furthermore, prices in China began to rise, which helped to keep prices in India stable. According to SteelMint, prices of 60% Ferro chrome are at around INR 103,500/t ($1,252/t).

Molybdenum prices sustain upward streak

Domestic and global prices of ferro molybdenum continue to remain strong. As per SteelMint's assessment, FeMo 60% prices surged to INR 3,420,000/t ($41,382/t) with an increase of INR 4,57,000/t ($5,535/t) w-o-w.

Outlook

The domestic market has opened with optimism, which may be reflected in scrap trade. Market participants anticipate a price rebound in the coming weeks.