India: Stainless steel scrap prices inch up; finish prices rangebound

India's domestic stainless steel market has turned positive, which had remained stable for the past few weeks, with a marginal increase in scrap prices. Prices of 304-grade scrap stood at INR 129,000/t ($1,569/t) exy-Delhi.

Imported 304-grade scrap prices have seen a significant improvement, rising by nearly $50/t to $1,510/t CFR Mundra compared to last week. This has extended support to domestic prices. Additionally, domestic mills have raised their scrap buying prices by INR 2,000-3,000/t in certain regions.

The primary reason for the price rise was the recovery in nickel prices on the London Metal Exchange (LME). Three-month nickel futures on LME hovered at around $22,005/t at the time of publishing this insight, up 0.2% w-o-w.

Finished sales remain moderate

Prices of 304-grade hot-rolled coils (HRCs) edged down by INR 1,000/t w-o-w to INR 199,000/t exw. Sales of finished stainless steel continue to remain steady at a moderate level. Despite this, there remains a robust demand for 200 series CRC/HRC JT and J4 grade material.

The finished stainless steel market is primarily impacted by cheaper coil imports. Vietnamese re-rolling mills were heard offering 304 CRCs at $2,300/t CFR Nhava Sheva. This price is $100/t lower compared to domestic prices. Meanwhile, the FOB price for 304-grade material in China is $2,300/t.

Note: It's important to note that Indian domestic players are pushing for the continuation of 18.95% Countervailing Duty (CVD) on specific imports from China.

Ferro alloys market overview

Indian ferro chrome prices hovered at around INR 110,200/t exw-Jajpur. Most of the deals were concluded in the range of INR 110,500-110,000/t last week.

Meanwhile, ferro molybdenum prices saw a downtrend last week. Prices of FeMo 60% material stood at INR 26,25,000/t ($32,001/t), falling by 3.7% w-o-w.

Despite sufficient supply and production of ferro chrome, prices decreased owing to low demand. Buyers were not in a hurry to book material since they were expecting prices to drop even further. Additionally, most deals often take place at the start or end of the month, which further pushed prices down.

Outlook

The finished stainless steel segment is awaiting an improvement in the market conditions while scrap traders are relieved due to increased sales. Looking at scrap bookings, it is being anticipated that there may be an increase in the production of 300 series in the upcoming months.