India’s stainless steel scrap prices continued to drop this week as weak buying interest and sufficient scrap availability weighed on the market. Additionally, mills preferred using nickel pig iron (NPI) and semi-finished products, which reduced the need for scrap.

BigMint assessed 304-grade domestic scrap at Rs 111,000 per tonne ex-Delhi, down Rs 3,000 week-on-week. Imported 304-grade scrap from nearshore origins stood at US $1,230 per tonne CFR Mundra, a fall of US $10 week-on-week.

Domestic scrap prices have softened further as production costs eased with lower coil prices and muted demand. Market participants said downstream activity remains slow, and the expected post-festive recovery has not yet arrived. Mills have also cut their procurement rates by Rs 2,000–3,000 per tonne for 304-grade scrap, which has added more pressure on trade-level offers.

A trader said that the overall market performance remains weak. Major mills are increasingly offering billets and NPI, reducing their dependence on scrap. This phenomenon has further affected scrap demand and kept prices low.

Meanwhile, South Korea’s POSCO has temporarily suspended operations at its stainless steel plant in Pohang after a gas leak during maintenance work. The company is carrying out safety inspections, and authorities are investigating the incident.

A Korean trader noted that production continues for now. However, POSCO agents have slowed their scrap purchases as inventories remain adequate. Domestic prices in Korea are still higher than in Japan, China, Taiwan, and India. SS304 scrap prices there are around KRW 1,780-1,800 per tonne, roughly US $1,300 per tonne CFR India.

No SS304 exports have occurred in the last five months, and this trend is likely to continue. Freight rates from Korea to India may also rise.

Nickel prices on the London Metal Exchange slipped one per cent to US $15,038 per tonne. Market sentiment is expected to stay cautious, with further corrections likely in both scrap and finished steel prices.