India: Stainless steel scrap prices hold steady w-o-w amid limited market activity
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- Stainless steel scrap prices remain stable
- Soft demand for finished products weighs on market
India's imported and domestic stainless steel scrap prices remained stable w-o-w. Although LME nickel prices also remained steady, major mills have reduced scrap purchases due to sufficient inventories and sluggish demand in the finished steel sector.
BigMint's benchmark assessment for domestic stainless steel 304-grade scrap stood at INR 121,000/tonnes (t) ex-Delhi, while the imported variant of the same, originating from the nearshore region, was priced at $1,380/t, CFR Mundra.
LME nickel prices
At the time of reporting, three-month LME nickel prices stood at $16,090/t, remaining largely stable compared with the previous week's $16,025/t. Meanwhile, nickel stocks in LME-registered warehouses edged up by 3% w-o-w to 165,384 t from 159,966 t the week before.
Market insights
Demand for both domestic and imported scrap remained sluggish due to weak demand in the finished products segment.
As per BigMint's assessment, prices of SS 316-grade scrap were at $2,575/t, with suppliers offering at $2,580-$2,590/t. Buyers' bids were at approximately $2,550-$2,560/t. Additionally, SS 430 scrap stood at $630/t and SS 201 at $740/t CFR Mundra.
A source stated, "Stainless steel scrap demand remains slow due to weak finished demand. As the year-end approaches, demand typically drops, but they expect improvement after January."
Global updates
China's stainless steel exports in October reached 417,000 t, marking a 9% decrease m-o-m but a 24.1% increase y-o-y. Exports to Taiwan and India declined, while Vietnam emerged as the largest importer, with a 38% rise to 42,000 t. Year-to-date exports to Vietnam have grown by 49%. The removal of anti-dumping duties on cold-rolled steel could further boost exports to Vietnam.
Outlook
Stainless steel scrap prices are expected to dip slightly in the short term due to weak demand and LME nickel price volatility. As year-end nears, the market remains slow, with mills holding off large purchases due to excess inventories and cautious sentiment.
