India's stainless steel market prices witness gains w-o-w amid increase in LME nickel

The stainless steel market in India has seen a price hike mainly due to the rise in LME nickel levels. According to BigMint's assessment, price of 304 HRC rose by INR 4,000/t, reaching INR 180,000/t, while the price of 304-grade scrap remained relatively stable at INR 116,000/t ex-works in Delhi.

This week, a major flat producer increased finish prices of 316 HRC and CRC by INR 3,000/t. Overall, in the finish market, prices have risen by INR 2,000-4,000/t in response. According to BigMint's assessment, 316 HRC prices reached INR 306,000/t, reflecting a INR 2,000/t increase for the week.

In the scrap market, there's a noticeable inclination towards domestic material over imports, leading to increased offers for scrap procurement. Prices for 304 scrap range from INR 115,000-INR 117,000/t, while 316-grade scrap is priced at approximately INR 210,000/t-INR 212,000/t ex-Delhi.

On the other hand, imported scrap prices remained relatively stable, with suppliers quoting prices for 304 ranging from $1,340 to $1,360/t. Meanwhile, 316 grade saw a $25/t increase, settling at $2,525/t, both CFR Mundra. Despite the higher offers in the market, demand and buying interest remained relatively subdued.

A scrap supplier informed BigMint that currently, bids for stainless steel scrap in India are considerably lower compared to European trade levels by $100/t. Consequently, a significant portion of the imported material is being redirected to the European region.

Additionally, the recent trade levels observed for 304 grade scrap originating from South America were reported at $1,450-1,460/t levels, CFR Germany.

During the week, China's domestic stainless steel market experienced a price increase. Prices for 304 grade CRC reached RMB 15,150/t ($2,104/t), marking a rise of RMB 150/t ($20/t), ex-works in China. FOB prices for 304 grade CRC also increased, settling at $2,146/t, reflecting a $57/t increase.

Raw materials scenario

LME Nickel : Nickel prices on the LME remained stable w-o-w. 3-M nickel prices on the LME rose by 1.5% w-o-w and are currently hovering at $17,680/t. Notably, nickel stocks in LME warehouses are at 73,944 t, witnessing inflows by 4,158 t for the week.

Ferro molybdenum: Indian ferro molybdenum prices witnessed a w-o-w increase of INR 7,000/t. BigMint's assessment for ferro molybdenum stands at INR 2,417,000/t compared against previous week's INR 2,410,000/t exw-Nagpur, calculated on a 60% pro rata basis.

Ferro chrome: Indian ferro chrome prices (HCFeCr60%) stood at INR 120,000/t exw-Jajpur. Prices remained range-bound compared to the previous week, reflecting consistency, with an average trading atmosphere and transaction performance.

Outlook

The domestic market is expected to see a favourable trend ahead, driven by a modest uptick in demand and pricing adjustments initiated by a key industry player.