India’s Stainless Steel Prices Rise as Supply Tightens and Raw Material Costs Climb
India’s stainless steel market moved higher this week as tighter domestic availability, firm raw material costs and pre-festive restocking strengthened mill pricing.
According to Shanghai Metals Market (SMM), major Indian producers withdrew discounts on several flat products, pushing 304-grade hot-rolled coil prices up by Rs 1,000 per tonne week-on-week to Rs 2.19 lakh per tonne ex-Mumbai. Prices for 316-grade hot-rolled coils rose by Rs 3,000 per tonne to Rs 4.18 lakh per tonne, supported by firm ferro-molybdenum costs.
The upward movement was also visible in the long-products segment. While 304-grade black bars remained at around Rs 1.95 lakh per tonne, 316-grade black bars increased by Rs 2,000 per tonne to Rs 3.52 lakh per tonne ex-Mumbai.
Raw material costs keep pressure on prices
The latest increase comes against a backdrop of elevated alloy costs. Ferro-molybdenum has remained a key driver for 316-series stainless steel, while nickel prices continue to influence the broader 300-series market. Earlier this month, a leading Indian producer had already raised coil prices across multiple grades, citing higher alloy costs and tight availability.
Scrap availability is another factor supporting the market. SMM noted that domestic stainless steel scrap remained tight, while imported scrap became less competitive because of elevated freight costs. This has effectively raised the floor for domestic stainless steel prices.
Demand offers additional support
Domestic demand has not surged dramatically, but pre-festive restocking is beginning to improve enquiries, particularly for stainless steel long products. This is giving producers greater confidence to hold firm on offers and withdraw earlier discounts.
Export activity, however, remains subdued amid continued uncertainty in European and Middle Eastern markets. Indian 304 and 316 bright-bar export offers were unchanged week-on-week at around $2,350 and $4,150 per tonne FOB Nhava Sheva, respectively.
For now, the Indian stainless steel market appears supported more by cost and supply-side pressures than a broad demand recovery. With alloy costs, freight and scrap availability remaining key variables, domestic stainless prices are likely to stay firm in the near term.
