India’s stainless steel (SS) scrap market remained largely quiet last week as prices held steady while trading activity stayed subdued. Mills are sitting on sufficient inventories, and wide bid-offer gaps kept fresh deals from materialising.

BigMint’s market assessments showed domestic 304-grade stainless steel scrap stable at Rs 111,000 per tonne ex-Delhi. They priced imported material of the same grade, sourced from nearby regions, at US $1,260 per tonne (CFR Mundra), unchanged from the previous week.

Nickel, a key ingredient in stainless steel, moved sideways on the London Metal Exchange (LME). Three-month nickel contracts closed at US $15,000 per tonne, almost flat compared with last week’s US $15,100 per tonne. LME warehouse inventories slipped marginally to 209,598 tonnes from 211,098 tonnes, reflecting steady but limited supply.

Supply remains tight, which is keeping stainless steel scrap values supported, but actual demand is muted. Buyers are not stepping forward as the bid-offer gap remains wide, a market participant told BigMint.

Traders noted that 316-grade scrap faces stronger demand than other grades, but limited supply constrains availability. Korea is paying more than India’s US $2,470-80 per tonne levels, so cargoes are moving there instead of to India.

International buyers reported 304 scrap at US $1,115–1,140 per tonne CIF Rotterdam, US $1,190–1,215 per tonne CIF Japan, US $1,280–1,320 per tonne CIF South Korea, and US $1,210–1,255 per tonne in Taiwan.

BigMint’s latest daily assessments showed nearshore-origin SS 316 scrap (loose) at US  $2,465 per tonne, up US $5 week-on-week. SS 201 scrap stood unchanged at US $630 per tonne, while SS 430 scrap inched up US $5 to US $600 per tonne. Domestic SS 316 scrap in Delhi held steady at Rs 211,000 per tonne.

Analysts expect the Indian stainless steel scrap market to remain range-bound in the short term as mills continue to buy cautiously. Limited availability of 316-grade scrap could provide some price support. Overall demand is likely to stay muted until seasonal buying picks up ahead of the festive season. Sentiment could also get a lift from auto and infrastructure demand as well as ongoing talks around GST reforms.