Large steel factory warehouse

India’s stainless steel market has shown fluctuations this week, with finished flats recording mixed price changes and longs remaining stable on a week-on-week basis amid limited trading activity.

BigMint’s benchmark assessment for 304-series hot-rolled coils (HRCs) slipped by Rs 2,000 per tonne week-on-week to Rs 185,000 per tonne ex-Mumbai. Prices of 304L black round bars (25-100 mm) were assessed at Rs 155,000 per tonne, also down by Rs 2,000 per tonne week-on-week due to weak buying interest.

BigMint’s assessment for SS 316 HRCs was Rs 332,000 per tonne and for 316 cold-rolled coils (CRCs) Rs 335,000 per tonne ex-Mumbai, both rising by Rs 2,000 per tonne week-on-week.

Overall sentiment in India’s stainless steel market remains weak, with no significant improvement. Participants are cautious due to the recently announced BIS certification requirements for imports and continued volatility in LME nickel prices.

Producers are waiting for the monsoon season to end and the festive period to begin for domestic demand to grow.

On the global front, expectations of a US Federal Reserve rate cut in September are being supported by weaker employment data. Meanwhile, China’s ongoing and expanded infrastructure has provided a slight boost to the region.

The improvement in China’s stainless steel market has supported an upward trend in LME nickel prices; however, weak domestic demand in China could lead to short-term volatility in nickel. In India, market participants noted that monsoon rains have delayed infrastructure projects, slowing a valuable recovery in steel consumption.

Indicative FOB prices for stainless steel longs remain unchanged, with India’s 304 bright bars at $20,502,100 per tonne and 316 bright bars $33,003,600 per tonne. Vietnam’s 304 bright bars are at $19,401,990 per tonne and 316 bright bars at $34,403,490 per tonne.

At the time of reporting, three-month nickel on the London Metal Exchange (LME) stood at $15,100 per tonne, stable on a week-on-week basis. Nickel stocks in LME-registered warehouses rose 3 per cent to 211,254 tonne compared to 204,912 tonne in the previous week.

Chinese portside prices of nickel pig iron (NPI) (grade 13%>Ni>10%) held steady at RMB 917 per tonne ($128 per tonne), while Indonesian FOB prices for the same grade were $109 per tonne, unchanged week-on-week. In China, domestic stainless steel 304-grade CRCs were priced at RMB 13,450 per tonne ($1,873 per tonne) ex-works, unchanged from the previous week. FOB prices for 304-grade CRCs were also firm at $1,910 per tonne.

Raw material prices

Ferro molybdenum: Prices in India stayed largely stable, dipping slightly by Rs 35,000 per tonne ($399 per tonne) compared to July 30. Tight domestic supply and steady demand kept prices supported. As per BigMint’s assessment dated August 6, prices were Rs 2,945,000 per tonne ($33,588 per tonne) ex-India, with around 15 tonne of deals reported last week in the range of  Rs 2,900,000-3,016,000 per tonne ($33,074-34,397 per tonne) ex-India.

Ferro silicon: Prices for 70 per cent grade in India dropped by Rs 2,400 per tonne ($27 per tonne) on August 4 from the July 28 level, following Bhutan’s price announcement of Rs 95,000 per tonne ($1,082 per tonne) ex-works and the resumption of production in Meghalaya. In Bhutan, prices fell by Rs 3,400 per tonne ($39 per tonne) to Rs 95,000 per tonne ($1,082 per tonne) week-on-week. About 650 tonne of deals were reported in both regions within Rs 95,000-98,000 per tonne ($1,082-1,116 per tonne).

Ferro chrome: Indian high-carbon ferro chrome (HC60%, Si:4%) remained range-bound at Rs 100,500 per tonne ($1,145 per tonne) ex-Jajpur.

Ferrous scrap: The imported scrap market in India stayed subdued, with limited buying and muted trade. European-origin shredded scrap was workable at around $365 per tonne, while no firm US-origin offers were reported. Australian HMS 80:20 was heard at $335-340 per tonne CFR. Market sentiment was described as stable, with hopes for improvement ahead of festive demand. However, prices eased slightly after a brief rise due to a stronger US dollar, and no trades were reported at higher levels.

Industry participants remain cautious due to high raw material costs and volatile LME prices. However, they expect demand for finished stainless steel to improve after the monsoon and during the festive season. This could support a positive trend in the upcoming months.

Also read – https://stainlesstoday.com/india-exempts-202-foreign-steel-licences-from-bis-checks/