India: Stainless steel scrap prices hold steady w-o-w amid limited market activity

• Stainless steel scrap prices hold steady
  
  
• Export market slows after Thanksgiving holiday
  
  

India's imported and domestic stainless steel scrap prices remained stable w-o-w. Although LME nickel prices saw a slight hike, 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 121,500/tonnes (t) ex-Delhi, while the imported variant of the same, originating from the nearshore region, was priced at $1,390/t, CFR Mundra.

LME nickel prices edge up

At the time of reporting, three-month LME nickel prices stood at $16,025/t, up 1.5% compared with the previous week's $15,795/t. Meanwhile, nickel stocks in LME-registered warehouses edged up by 1.2% w-o-w to 159,966 t from 158,046 t the week before.

In a recent update, it was heard that Indonesia will review miners' compliance with environmental rules and production quotas under the RKAB to ensure sustainable resource management. Nickel smelters have faced ore shortages, and the government is focused on managing supply and demand. Imports of nickel ore surged in 2024, highlighting the challenges in meeting domestic demand.

Market insights

Imported scrap from the nearshore region held steady this week, largely due to a slowdown in export market activity during the Thanksgiving holiday period. In India, buying interest remained subdued as demand in the finished goods segment continued to lag, reflecting a quiet market overall.

As per BigMint's assessment, prices of SS 316-grade scrap were at $2,580/t, with suppliers offering the material at $2,600-$2,620/t. Buyers' bids were at approximately $2,560-$2,570/t. Additionally, SS 430 scrap stood at $630/t and SS 201 at $740/t CFR Mundra.

A mill source mentioned, "Buying activity for both domestic and imported scrap has remained subdued, with mills only purchasing on a need basis as they currently hold sufficient inventories. The ongoing low demand for finished materials has further reduced the urgency to procure scrap, leading to a quieter market."

Meanwhile, domestic 304 scrap prices held steady at INR 121,500/t, while SS 316-grade scrap marginally dropped to INR 221,000/t ex-Delhi-NCR on cash payment terms.

Sources report that major mills are buying 304 scrap at around INR 124,000-126,000/t, while 316 scrap is priced at INR 221,000-223,000/t, delivered (DAP), with a credit period of 30-45 days.

Another trader source mentioned, "With slow movement in finished goods and oversupply concerns surrounding nickel and chrome, market dynamics could shift, potentially lowering production costs. If supply continues to outpace demand, it may lead to price adjustments, benefiting manufacturers by reducing raw material expenses and possibly stimulating activity in the coming months."

US SS scrap market

Stainless steel domestic scrap prices in the US held steady, with limited movement in sentiment across most grades, as mill demand remained weak due to the Thanksgiving holiday and has yet to recover. Traders anticipate a similar trend in December, with subdued sales prices driven by inventory management at mills and processors. LME nickel prices saw a slight increase, influencing market sentiment. Export prices for 304 scrap slightly decreased, while 316 scrap remained stable, with increased interest from exporters due to its higher value.

Outlook

Stainless steel scrap prices are likely to see a slight decline in the near term, driven by weak demand and ongoing volatility in LME nickel prices. As the year-end approaches, the market is expected to remain sluggish, with mills holding off on large purchases due to excess inventories and cautious market sentiment.