India: Stainless steel scrap prices hold steady w-o-w amid need-based buying

• SS scrap prices steady despite LME drop
  
  
• Imported scrap demand weak, need-based buying persists
  
  
• Domestic market sluggish, impacted by holidays
  
  

India's imported and domestic stainless steel scrap prices remained range-bound for the week. Despite the drop in LME nickel prices, buying activity in the market was majorly driven by the need to fulfill immediate requirements.

BigMint's benchmark assessment for domestic stainless steel 304-grade scrap stood at INR 121,000/tonnes (t) ex-Delhi, unchanged w-o-w, while the imported variant of the same, originating from the nearshore region, was priced at $1,410/t, CFR Mundra.

LME nickel prices drop

At the time of reporting, three-month LME nickel prices stood at $15,775/t, reflecting a drop of 3% from the previous week's $16,325/t. Meanwhile, nickel stocks in LME-registered warehouses edged up by 5% w-o-w to 154,452 t from 147,258 t the week before.

Nickel prices remain under pressure globally, with LME prices showing fluctuations. High-nickel pig iron prices continue to decline, while pure nickel faces downward sentiment due to macroeconomic uncertainties and weak stainless steel demand. Despite slight upward movement in premiums, the market remains volatile, with ongoing downward pressure on nickel briquettes, reflecting caution amidst global economic challenges.

Indonesian nickel imports

Indonesia's nickel ore imports skyrocketed to 9.3 mnt from January to October 2024, a monumental jump from just 161,917 t during the same period last year. This surge is driven by heightened smelter demand and delays in mining quota issuance due to heavy rains.

Imported scrap prices

BigMint's benchmark assessment for imported stainless steel 304-grade scrap, originating from the nearshore region, was at $1,410/t, CFR Mundra, remained as compared to last week's $1,420/t.

A mill source mentioned "Despite the decline in LME nickel levels, imported stainless steel scrap offer prices were on the higher side so buyers are not interested to buy materials, additionally finished demand is also weak."

As per BigMint's assessment, prices of SS 316-grade scrap were at $2,600/t, with suppliers offering the material at $2,620-$2,640/t. Buyers' bids were at approximately $2,570-$2,580/t. Additionally, SS 430 scrap stood at $630/t and SS 201 at $740/t CFR Mundra.

Another source mentioned, " Domestic trade activities have slowed down recently, particularly after Diwali, with work being disrupted and the market facing labor shortages. Furthermore, it is reported that several major mills have been importing stainless steel billets and now have sufficient scrap stock, leading them to halt further purchases. "

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

A trader source informed, " Domestic scrap demand remains sluggish with trade activities occurring at a low to moderate pace. Some regions are partially closed today on the occasion of Guru Nanak Jayanti, affecting market activity. "

Outlook

Stainless steel scrap prices are likely to remain range-bound in the short term, driven by falling LME nickel prices. Domestic trading activity is expected to remain subdued, with market participants anticipating low to moderate engagement.