Indian Stainless Steel Industry Remains Stable Amid Raw Material Correction

Price

• LME's Nickel opened today down by 1.32% at $16,085/ton, while Copper opened today down by 0.36% at $8,835/ton.
• INR opened today against USD at 83.95/-.
• The current retail price for 304 CR wider 2B is approximately Rs. 198-201/kg, ex-Delhi, while for narrow sizes, it is approximately Rs. 3-5/kg cheaper, plus GST.
• SS 316L imported material is now being retailed in the price range of Rs. 317-321/kg for HR wider. Indian material is more expensive by Rs. 5-10/kg. For CR wider, the rates are Rs. 10/kg higher than HR. SS 201 imported CR 2B (extra low thicknesses like 0.26mm) is being retailed at Rs. 143-148/kg, ex-Delhi, plus GST.
• Domestic 201 (the cheapest grade) is now being retailed in the price range of Rs. 140-143/- base price (with additional charges for thickness), plus GST.

Demand and Supply

• Demand is almost equivalent to supply for 304 & 316L (both CR & HR) in generic sizes.
• Demand is limited for ferritic grades, including 430 for cutlery/utensils, 409M railway grades, or 409L automotive segment grades.
• There is good demand for 201 grades, including Holloware, Pipes & Tubes, and General Fabrication.
• Decent demand is also observed for 304 narrow sizes, used in pipes, tubes, or rerolling applications.

News

• In Turkey, POSCO Assan TST and Kibar Holding have jointly launched the Stainless Steel Industry Association (PASSAD), led by Kibar Holding’s CEO, Haluk Kayabaşı. This is the third such association, following PASID and PASDER. PASSAD aims to advance the stainless steel industry by addressing issues faced by producers, users, and consumers, and promoting stainless steel use. Additionally, PASSAD will represent POSCO Assan TST in anti-dumping matters, reinforcing its industry advocacy role.
• Makstil AD has selected Danieli Technologies to revamp the reheating furnace at its steel plate mill in Skopje, North Macedonia. The upgrade aims to boost energy efficiency and reduce pollution, utilizing Danieli's "Efesto" simulation tool and advanced furnace components. Set for completion by mid-2025, the project will feature MAB flameless and RAD radiant burners, cutting natural gas consumption by up to 10% and lowering CO2 emissions. The initiative also includes a high-efficiency heat recuperation system and improved refractory lining, ensuring better performance.
• In July, China’s terminal demand for construction materials dropped due to seasonal factors, the completion of downstream projects, and fewer ongoing projects. However, August is expected to see a rise in demand as temperatures decrease and weather conditions improve. The acceleration of special bond issuances and policy implementation is likely to enhance financial conditions, stabilizing and potentially increasing demand. Despite a forecasted 4% increase in construction material consumption in August, overall demand remains low, with companies cautiously purchasing materials amid market uncertainties.
• The US dollar has recently surged against the Japanese yen, making it challenging to negotiate prices for Japanese steel products. On August 7, the dollar rose from 145 to 147 yen, closing at 146.25, giving Japanese exports an edge. Taiwanese buyers noted that since late July, prices for Japanese steel, including secondary products, have been firm, with Japanese companies insisting on their rates. Additionally, the global anti-dumping trend against China, India, and Vietnam's hot-rolled steel may also support these price levels.
• The recent Indonesian initiatives to drastically reduce CO2 emissions, particularly in the nickel industry, highlight the measures taken by the European Commission against Indonesian stainless steel suppliers. These market protection measures are a substitute for the restrictions imposed by the EU Carbon Border Tax (CBAM), which are becoming obsolete.
• Shyam Metalics and Energy advanced 2.88% to Rs 719 after the company's stainless steel sales volume increased by 219% to 5,699 MT in July 2024, compared to 1,786 MT sold in July 2023. Average realization improved by 37% to Rs 1,37,857 per ton in July 2024, from Rs 1,00,399 per ton in July 2023.

Expert's Opinion

• Both SS 304 and 316L are expected to experience a moderate trend in the coming week due to a decrease in raw material prices.
• The SS 400 series continues to perform poorly due to lack of demand for ferritic grades.
• The SS 200 series is still performing strongly due to the lack of imported products in the market.