Indian Stainless Steel Market Stable; US Tariffs Shift Global Demand Trends

Key Updates

• Demand Varies Across Series: 300 series demand is improving but remains slow. 400 series demand is rising, while 200 series demand is upbeat due to limited imports.
• Nickel and Ferrochrome Prices Influence Market Trends: Nickel and ferrochrome prices rebounded post-holiday, impacting stainless steel costs. Market participants anticipate price fluctuations amid evolving global supply dynamics.
• US Tariffs Impact Indian Stainless Steel Trade: The industry fears diverted shipments and increased competition due to US tariffs. ISSDA warns of market access issues and potential job losses.

Stainless Steel Price:

• Nickel opened today up by 0.10% at $15,515/mt, while Copper opened up by 0.82% at $9,563/mt.
• INR opened against USD at 86.85/-.
• The current retail price for 304 CR wider 2B is approximately Rs. 197-199/kg (basic), ex-Delhi. Narrow is Rs. 3-5/kg cheaper, plus GST. SS 316L HR imported material is retailing at Rs. 318-322/kg for HR wider, with Indian material costing Rs. 5-10/kg more. CR wider rates are Rs. 10/kg higher than HR.
• SS 201 imported CR 2B (extra low thicknesses like 0.26mm) is priced at Rs. 165-167/kg, ex-Delhi, plus GST.
• Domestic 201 (cheapest grade) is retailing at Rs. 143-145/kg (base price), plus GST and thickness difference.

Stainless Steel Demand and Supply:

• 300 series demand is improving slightly but remains weak due to a cash crunch.
• 400 series demand is increasing.
• 200 series demand has surged due to a shortage of imported material.
• No.4 PVC material demand continues rising in both 200 and 300 series, as seen in past months.

Stainless Steel News:

• The Indian stainless steel industry is concerned about new US tariffs, fearing diverted shipments and strained trade relations. The Indian Stainless Steel Development Association (ISSDA) warned these tariffs could limit market access, increase competition, and hurt job creation. The industry expects this issue to be discussed during Prime Minister Modi’s meeting with US officials.
• The European Public Prosecutor’s Office (EPPO) in Bologna froze EUR 950,000 against a company evading customs duties on stainless steel imports. A previous order froze EUR 2.4 million, bringing the total to EUR 3.3 million. Two firms falsely declared 170 shipments from China as South Korean to avoid EUR 2.4 million in anti-dumping duties.
• The Philippines is considering banning raw mineral ore exports, driving up Indonesian nickel ore prices and nickel iron transaction rates. Ferrochrome prices rebounded post-holiday, increasing stainless steel costs. Despite stable steel mill prices, demand remains weak. Construction activity may rise post-holiday, but weak demand could challenge stainless steel price stability.
• China’s stainless steel market is bullish due to a tight raw material supply. Prices for stainless steel HR coil 304 and 316 No.1 increased. Indonesia raised nickel ore export quotas, easing supply pressure. However, the Philippines’ proposed mineral export ban could tighten the ferronickel market. Production was expected to decline in early 2025.
• Japan formally requested an exemption from the newly announced 25% US tariffs on steel and aluminum. The request was submitted via diplomatic channels. Similar tariffs were imposed during Trump’s first term but were eased under Biden in 2022. Japan, the sixth-largest steel exporter to the US, seeks to avoid economic disruption.
• Chromium ore prices rose post-Chinese New Year, increasing high-carbon ferrochrome costs. Due to low transaction volumes, retail price hikes offered little relief to losses. TISCO and Tsingshan Group kept February purchase prices unchanged. Ferrochrome manufacturers are maintaining prices, but slow demand might push stainless steel mills to reduce raw material purchases in March.

Expert Opinion:

• 300 series prices may rise due to a strong USD.
• 400 series prices are expected to remain high due to the BIS issue.
• 200 series is likely to perform well domestically as imports remain restricted.