Indian stainless steel prices decline for fourth consecutive week amid raw material price drop

The stainless steel market in India has seen a continuous drop in prices for the fourth week in a row, primarily due to the decrease in raw material prices. SteelMint's assessments show that 304-HRC scrap is currently priced at INR 200,000-202,000/t ($2,402-2,425/t), while the 304 grade scrap is in the range of INR 119,000-121,000/t ($1,429-1,453/t) exw-Mumbai.

Market participants have reported that there is a consistent demand for finished stainless steel products. Meanwhile, the demand for scrap materials is strong in the domestic market as imported materials are currently not cost-effective.

Sellers are reluctant to offer their products at reduced prices. Instead, they are opting to hold off on sales due to a significant gap between buyers' offers and sellers' asking prices.

A trade source mentioned, "We expect demand to be limited this quarter. We had hopes that prices might go up, but they haven't due to various factors like falling futures and lower demand compared to last year."

Imported 304-grade scrap prices fell w-o-w and are at $1,380-1,400/t CFR and 316-grade scrap at about $2,700-2,710/t CFR Mundra.

Meanwhile, China's 304 grade CR prices are hovering at around $2,210-2,220/t, FOB China.

Raw materials overview

• Ferro chrome: Indian ferro chrome prices (HC60%, Si:4%) decreased by INR 4,200/t w-o-w. This is because the demand for domestic stainless steel has slowed down, and the Chinese market has also become less active. As per SteelMint's assessment high-carbon ferro chrome (HC60%, Si:4%) prices stood at INR 111,800-114,500/t.
  
  
• Ferro molybdenum: Indian ferro molybdenum prices experienced a decline of INR 175,000/t w-o-w. This decline is due to a lack of interest from market participants in buying in bulk. According to SteelMint's assessment on 18 October, Indian ferro molybdenum prices stood at INR 2,525,000/t exw-Nagpur on 60% pro rata basis. Around 10-12 t of trades were concluded, worth INR 2,500,000-2,550,000/t.
  
  
• LME nickel: Three-month nickel futures on the LME were largely stable w-o-w at $18,665/t. This stability is attributed to a slight decrease in nickel inventories stored in warehouses.
  
  

Outlook

Participants in the market foresee that the future price trend will be contingent on both demand dynamics and the movement of raw material prices.