India’s stainless steel scrap prices fell last week as weak buying and ample scrap supply dampened the market. Many mills turned to cheaper alternatives such as nickel pig iron (NPI) and semi-finished products to cut costs and manage cash flow efficiently.

BigMint assessed domestic 304-grade scrap at Rs 1,14,000 per tonne ex-Delhi, down Rs 2,000 week-on-week. Imported 304-grade scrap from nearshore origins dropped to US $1,240 per tonne CFR Mundra, down US $40.

Market activity stayed subdued as buyers avoided fresh bookings. Increased arrivals of NPI and billets from nearby regions offered cost-effective substitutes with shorter lead times. This reduced immediate scrap demand and limited the scope for price recovery.

Traders said a leading stainless steel producer sold large volumes of 304 and 316 billets from Indonesia. This added pressure on scrap prices. Billet offers hovered around US $1,510-1,515 per tonne, but no major scrap deals took place due to wide bid-offer gaps.

Another trader noted that imported 304 scrap traded between US $1,240 and US $1,260 per tonne. Limited deals closed at US $1,250-1,260. Weak finished steel demand and a slow post-Diwali recovery kept sentiment cautious, as buyers waited for clearer price direction.

In global markets, European stainless steel sentiment also remained soft. Slow economic recovery, high energy costs, and competition from Asian imports weighed on prices. Mills continued to limit restocking due to sufficient inventories.

BigMint reported nearshore 316 scrap at US $2,500 per tonne, down US $30. The 201 scrap stood at US $645, down US $15, while 430 scrap dropped to US $560, down US $15. Nickel prices on the London Metal Exchange stayed range-bound at US $15,210 per tonne, down US $75 from last week.

Market participants expect stainless steel and scrap prices to face further corrections in the near term as demand remains uncertain and inventories stay high.