India’s stainless steel scrap market stayed weak during the week ending 26 December. Mills slowed buying as inventories remained comfortable across most plants. At the same time, producers relied more on alternative raw materials, which limited overall scrap demand.

Meanwhile, imported scrap trade remained quiet throughout the week. Bid and offer gaps continued to prevent deal closures. As a result, traded volumes stayed negligible across key ports.

However, one leading stainless steel producer restarted scrap purchases at one facility. The company had paused buying since mid-November due to inventory accumulation and NPI availability. Still, sources said purchase volumes remained marginal.

In addition, demand for 300-series stainless steel declined sharply. Mills saw fewer order bookings, which forced them to scale back raw material procurement. Consequently, producers avoided buying 300-series scrap, including captive material.

Instead, mills focused mainly on 400-series and 201-grade scrap. Most plants already held adequate stock levels. Therefore, near-term procurement requirements remained capped.

Globally, sentiment also stayed subdued. The US stainless steel scrap market remained largely inactive ahead of the Christmas holidays. Traders reported weak demand, limited cash needs, and little urgency to transact.

Although LME nickel prices rose during the week, sentiment failed to improve. Buying interest for 304 and 316 grades stayed muted. Moreover, export prices moved within a narrow range, pointing to continued inactivity into early January.

Looking ahead, the stainless steel scrap market may remain subdued. Weak 300-series demand, ample inventories, and alternative raw material usage could restrict mill purchases. Therefore, the recent nickel price rebound may offer limited short-term support.

At the end of the week, domestic 304-grade scrap prices stood at Rs 104,000 per tonne DAP Delhi, while imported 304-grade scrap from nearshore origins remained at US $1,170 per tonne CFR Mundra. Nearshore SS 316 scrap traded at US $2,380 per tonne, while SS 201 scrap stood at US $620 per tonne and SS 430 scrap at US $560 per tonne.

In the domestic market, SS 316 scrap DAP Delhi settled at Rs 205,000 per tonne, while SS utensil scrap stood at Rs 58,000 per tonne. Meanwhile, LME three-month nickel prices closed at US $15,660 per tonne, up 6 per cent week on week.