LME Prices Drop, Demand for Stainless Steel Grades Varies Across Markets

Price

• LME's Nickel opened today down by 0.85% at $16,625/ton, while Copper opened down by 0.41% at $9,198/ton.
• The INR opened against the USD at 83.89/-.
• The current retail price for 304 CR wider 2B is approximately Rs.198-201/kg (basic price, ex-Delhi), while the price for narrow sizes is Rs.3-5/kg cheaper, plus GST.
• SS 316L imported material is being retailed at Rs.317-321/kg for HR wider. Indian material is Rs.5-10/kg more expensive. 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 SS 201 (the cheapest grade) is priced at Rs.140-143/kg (base price, plus thickness difference), plus GST.

Demand and Supply

• Demand is slightly better for 304 & 316L (CR & HR), in generic sizes, compared to the previous two months.
• There is minimal demand for ferritic grades, except for some railway fabrication usage in 409M/X2CrNi12/IRSM 44-97 grades.
• Good demand is observed in No.4/Matte PVC finish in 201 grades, due to short supply from domestic players and the non-renewal of BIS for imported material.
• Decent demand is also seen for 304 narrow sizes for applications like pipes and tubes or rerolling uses, due to a short supply of imported material.

News

• Nippon Steel, the fourth-largest steelmaker globally, has urged Japan's government to impose anti-dumping tariffs on China's steel exports to protect domestic industries. Vice Chairman Takahiro Mori expressed concerns about the impact of China's increased exports on Japan's market. Mori is lobbying the government and other steelmakers to adopt protective measures, as Japan risks becoming a target for surplus exports, especially with reduced Chinese domestic demand.
• Nagendra Nath Sinha, former steel secretary in India's Ministry of Steel, highlighted the adverse effects of unfair imports and dumping on India's steel industry. Continued low demand from China exacerbates this issue. Sinha pointed out that flat steel products are particularly affected. Conference participants noted that China's steel imports might decline from September due to India's decision not to renew the Bureau of Indian Standards (BIS) license.
• Japan’s ferrous scrap exports reached approximately 570,000 tons in July, a slight 0.7% increase compared to the same month last year. Vietnam was the top importer, with 1.5 million tons, a 68% year-on-year rise. South Korea and Taiwan followed with 959,000 tons and 402,000 tons, showing decreases of 46% and 31%, respectively. Japan’s total ferrous scrap exports in the first seven months of the year were around 3.8 million tons, a 6.5% decline year-on-year.
• India’s economy is thriving, with an 8.2% real GDP growth driven by a 5.9% industrial uptick. The steel sector, contributing 17.92% to growth, is adapting to eco-friendly technologies influenced by climate change. Demand for innovative materials like stainless steel, lithium, nickel, and cobalt is rising. In India, finished stainless steel consumption has grown at a 4.36% CAGR over the last five years. Global stainless steel production is expected to increase by 4.4% in 2024.
• Copper prices remained steady on Friday amid optimism about increased government support for China’s economy, the top metals consumer. Three-month copper on the London Metal Exchange stayed at $9,245 per ton, following a session high of $9,382 per ton. Base metals pared gains after U.S. inflation data suggested the Federal Reserve may cut interest rates by just 25 basis points, boosting the dollar index and making U.S.-priced commodities more expensive.

Expert Opinion

• Both SS 304 & 316L are expected to have a medium to good run this week due to a slight raw material price increase.
• The SS 400 series continues its dull run due to a lack of demand for ferritic grades.
• The SS 200 series remains strong, especially in special finishes like N4P (Matte PVC) & N8P (Mirror PVC), due to the shortage of imported products in the market.