India’s stainless steel (SS) scrap market gained further ground last week as buyers displayed stronger interest. Costs for raw materials moved higher, while ferro-molybdenum and chrome prices turned firmer. At the same time, finished steel demand stayed stronger than expected, which added fresh support to the market.

In addition, global stainless steel producers lifted bids and raised surcharges. Their moves confirmed that momentum in overseas markets has started to pick up.

BigMint assessed domestic 304-grade scrap at Rs 113,000 per tonne ex-Delhi. Prices rose by Rs 1,500 compared with last week. Imported 304-grade scrap from nearshore origins climbed US $20 to US $1,280 per tonne CFR Mundra.

One of the traders said that the enquiries have always been there. However, a leading SS manufacturer sold billets to scrap consumers and disrupted pricing, but demand stayed consistent.

A major buyer said that the increase in prices looks like a short term thing. The chrome hike is supply-driven, and 316 availability is tight. Still, the October-December quarter could be positive as suppliers destock ahead of winter holidays.

Meanwhile, nickel prices on the London Metal Exchange (LME) edged one per cent lower during the week. The three-month contract closed at US $15,275 per tonne against US $15,380 last week. LME-registered nickel stocks rose three per cent to 215,310 tonnes from 209,676 tonnes.

BigMint also reported nearshore-origin SS 316 scrap (loose) at US $2,480 per tonne, up US $20. SS 201 scrap (loose) increased to US $640 per tonne, higher by US $15. SS 430 scrap (loose) climbed to US $600 per tonne, up US $10. In Delhi, SS 316 scrap traded at Rs 213,000 per tonne, rising Rs 1,500 compared with the week before.

Looking forward, stainless steel scrap prices may continue on an upward path. Alloy costs, particularly molybdenum and chrome, remain on the rise. Tight supplies are also likely to keep supply-driven price pressure intact through the near term.