India: Stainless steel scrap prices move up unlike finish prices

The Indian stainless steel market witnessed mixed trend due to raw material cost, import challenges, and slight hike in domestic demand. Prices of the 304-grade hot-rolled coils (HRCs) remained stable w-o-w to INR 208,000/t ($2,537/t) exw. Meanwhile, 304-grade scrap prices increased by stood at INR 132,000/t ($1,590/t) exy-Delhi.

The bullish trend in the market is being fuelled, in part, by the increasing challenges associated with importing materials, particularly from China and Taiwan. In response to these difficulties, prominent players are proactively increasing their inventory levels.

Simultaneously, prices of imported stainless steel scrap have experienced a surge w-o-w. Industry participants have pointed out that imported 316 scrap is currently valued at approximately $2,810-2,820/t, while 304 scrap is priced at $1,500/t, CFR Mundra. Moreover, around 400 t of 304 scrap stainless steel deal concluded at these rates while domestically around 150 t 304 scrap traded at INR 132,000/t, respectively.

Additionally, when considering the rising costs of raw materials and production, several leading stainless steel manufacturers have experienced fluctuations in their surcharges for September 2023.

Raw materials market overview

• Ferro chrome: Indian ferro chrome (HC60%, Si:4%) prices fluctuated due to rising manufacturing costs, which enabled many smaller deals to conclude at higher prices. Indian high carbon ferro chrome (HC60%, Si:4%) prices stood at INR 118,500/t exw-Jajpur, with bulk deals being concluded in the range of INR 115,000-118,000/t and deals at lower volumes concluded in the range of INR 119,000-122,000/t.
  
  
• Ferro molybdenum: Indian ferro molybdenum prices decreased by INR 54,000/t w-o-w to INR 2,934,115-3,000,885/t exw-Nagpur on 60% pro rata basis, as per SteelMint's assessment. The marginal price decline can be attributed to buyers' reluctance to pay higher prices, especially within a moderate stainless steel market, creating downward pressure on prices.
  
  
• LME nickel: Three-month nickel futures on the London Metal Exchange (LME) increased slightly by 0.4% w-o-w to $20,720/t. Due to marginal fall of nickel inventories in the warehouses.
  
  

Outlook

It is anticipated that the prices of stainless steel might foresee a seasonal uptick due to improving demand of Indian buyers.