India: Stainless steel scrap market stable but prices of finished products continue to fall

Stainless steel prices in India continued to fall this week. The 304 grade hot-rolled coil (HRC) prices, ex-Mumbai, dropped by INR 1,000/t ($12/t) w-o-w to INR 225,000/t ($2,720/t), while domestic 304 grade scrap prices, ex-Delhi, were assessed at INR 128,000/t ($1,548/t), stable w-o-w.

Nickel prices on the London Metal Exchange (LME) fell by around 2.5% w-o-w and 12% m-o-m. LME three-month nickel prices are currently hovering at around $23,000/t. Ferro molybdenum prices also corrected by around 3.7% w-o-w.

Market highlights

The stainless steel scrap market traded well during the first two weeks of March, and the second half of the month may witness less activity because of fiscal closing. Although trading were closed above $1580 levels for 304 scrap, oversease scrap prices were reported to be in the range of $1550 to $1590. The 316 scrap offer level was reported to be above $2900.

"The current domestic market offers range from INR 126,000/t to INR 128,000/t, while demand for 316 scrap is remains high and prices are averaging INR 242,000/t to INR 245,000/t. Even though the prices of nickel and molybdenum on the LME dropped, it is more or less stable "a nearby scrap merchant stated.

The finished stainless steel segment remained subdued w-o-w. Although an announcement has yet to be made, there has been market speculation about one of the largest mills closing its discount scheme based on order quantity. The market has once again declined. "Because of the end of the fiscal year, March is a difficult month for sellers. Another month of lower demand is possible "According to a dealer from Mumbai.

Ferro chrome prices fall

According to SteelMint's assessment on 9 March, Indian ferro chrome(HC60%) prices dropped by INR 2,600/t w-o-w to INR 118,800/t exw-Jajpur. The drop in prices was mainly because of weak demand in the domestic market at higher levels. Buyers resisted booking material at higher levels due to the under-pressure stainless steel market. Furthermore, increased production in China also reduced the interest in Indian ferro chrome. This factor also impacted ferro chrome prices.

Ferro moly prices correct

Domestic ferro molybdenum prices fell this week by up to 3.7% w-o-w. FeMo 60% prices corrected to INR 37,55,000/t ($45,401/t).

Outlook

This week, domestic stainless steel demand remained unchanged. The March fiscal closing is resulting in lower demand. Exports, according to producers, are expected to rise in the coming fiscal year.