Nickel Gains 0.31%, Copper Slips; Stainless Steel Prices Up

Key Takeaways

• Nickel Prices: Nickel up 0.31%, now at $16,050/mt; copper slightly down by 0.22% at $9,255/mt.
• Stainless Steel Prices: 304 CR wide increased to Rs 197–199/kg; 316L HR imported Rs 318–322/kg, domestic Rs 5–10/kg costlier.
• Market Demand: Demand for 200 and 400 series improves; 300 series sees gradual recovery amid cash flow issues.
• Global Factors: LME nickel supported by China’s 5% GDP growth; green steel gets Rs 150 billion support in India.
• Outlook: Stainless steel prices expected to rise, driven by higher USD rates and supply constraints.

Stainless Steel Price:

• Nickel opened today up by 0.31% at $16,050/mt, while Copper opened today down by 0.22% at $9,255/mt.
• INR opened today against USD at 86.42/-.
• Current retail price for 304 CR wider 2B is now running approximately at Rs.197-199/kg basic price range, ex-Delhi, while for narrow, it is approximately Rs.3-5/kg cheaper, plus GST.
• SS 316L HR imported material is now being retailed in the price range of Rs.318-322/kg for HR wider. Indian material is 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. 165-167/kg, ex-Delhi, plus GST. Domestic 201 (cheapest grade) is now being retailed in the price range of Rs.143-145/- base price (plus thickness difference extra), plus GST.

Stainless Steel Demand and Supply:

• Demand is slightly getting better in 300 series, but not that much, due to cash crunch.
• In 400 series also, demand is seen to be increasing.
• 200 series demand has further increased and is upbeat, due to shortage of imported material.
• No.4 PVC material demand is still on the rise as expected, both in 200 and 300 series, as observed in the past few months.

Stainless Steel News:

• On January 20, electronic trading dropped 345 yuan due to Indonesian ferronickel's return. Spot prices slightly increased, but transactions remained sluggish as the market gradually entered the Chinese New Year holiday.
• LME nickel futures increased to US$16,097/mt on January 17, supported by strong Chinese economic data and stainless steel gains. Short-term fluctuations are expected despite China’s 5% GDP growth.
• In December 2024, India classified low-emission steel as "green" and proposed 150 billion rupees for low-carbon initiatives, with incentives planned until 2030.
• Copper prices face short-term pressures but remain strong long-term due to green energy demand.
• BMI expects refined copper production to grow 3.6% in 2024, with consumption accelerating in 2025.
• China’s economy grew 5.4% in Q4, meeting its 2024 target. Housing market stabilization and new investments are 2025 priorities.
• Taiwan’s Feng Hsin Steel held rebar at NT$17,100-17,700/mt and scrap at NT$9,200-9,900/mt. Post-holiday shipments surged, with higher prices expected later.

Expert Opinion:

• SS 300 series prices are expected to rise in the current scenario, since USD is high.
• SS 400 series prices are also expected to remain on the steeper side, because of the BIS issue.
• SS 200 series is also expected to perform very well domestically, as imports are choked.