India's stainless steel scrap prices increase w-o-w, finished segment maintains stability

BigMint's assessment reveals that the price of imported 304 scrap has gone up by $30/tonne (t) and is currently hovering at around $1,380/t. In the finish segment, however, prices remained steady. BigMint's assessment for 304 HRC remained unchanged at INR 180,000/t, and the price of domestic 304-grade scrap stayed relatively steady at INR 116,000/t ex-works in Delhi.

Nickel prices on the LME gained over $660/t w-o-w. 3-M nickel prices on the LME rose by 4% and are currently hovering at $18,340/t. Notably, nickel stocks in LME warehouses are at 73,572 t, witnessing outflows by around 340 t for the week.

Scrap market insights

The domestic scrap market remained stable, with prices for 304 scrap ranging from INR 115,000-INR 117,000/t, and 316-grade scrap priced at approximately INR 210,000 to INR 212,000/t ex-Delhi. In the current market, there is a noticeable preference for domestic material over imported scrap.

This week, the offers for imported scrap have increased by $30/t. Suppliers are quoting prices for 304 grade scrap at $1,380/t, with some offering at $1,400/t. Meanwhile, prices for 316 grade scrap have risen by $25/t, reaching $2,550/t, CFR Mundra. Despite the elevated offers in the market, demand and buying interest have remained relatively subdued.

A scrap supplier informed BigMint, that one key stainless steel longs producer has reduced scrap buying volume because it has started importing stainless steel billets. Another supplier said, Indian mill prices are not competitive when compared to European bids, as the latter are up to $120/t higher than those in India.

Finished segment steady

At the start of March, a major flats producer had increased its listed prices which led to positive sentiments across local markets. Although demand is still stagnant and participants are waiting for the general elections to get over. Imported 304 cargo is still available at around INR 10,000/t lower than domestic prices.

In the long products segment, 304 bright bar trade levels were heard at around INR 162,000/t while bright wire rods are available at around INR 166,000/t ex-Mumbai. Hexagon bars are heard at around INR 174,000/t.

A source informed that market participants are anticipating a price revision from the major flats producer which will offer more clarity on prices.

China market overview

During the week, China's domestic stainless steel market experienced a marginal decrease. Prices for 304 grade CRC reached RMB 15,100/t ($2,100/t), marking a drop of RMB 50/t ($6/t), ex-works in China. FOB prices for 304 grade CRC remained largely stable at $2,118/t.

Raw materials scenario

Ferro molybdenum: There was a slight w-o-w decline in ferro molybdenum prices by INR 11,000/t ($133/t) compared to the previous assessment on 6 March as the market has not picked up momentum because of weak demand and decreased interest in purchasing. Indian ferro molybdenum prices were at INR 2,406,000/t ($29,056/t) exw-Nagpur on a 60% pro rata basis.