Nickel and Copper Decline While Stainless Steel Prices Stay Steady

Key Takeaways:

• Stainless Steel Prices: Rates remained steady, with the 200 series gaining due to limited imports, and the 300 series expected to rise.
• Market Demand: Cash constraints are limiting demand growth, but No. 4 PVC materials in the 200 and 300 series are seeing steady increases.
• Import Challenges: BIS regulations and reduced imports are supporting higher prices for the 200 and 400 series stainless steel.
• Global Trade Impact: US tariffs on steel imports and UK’s £2.5 billion investment in domestic steel could shift market trends.
• Expert Outlook: The 300 and 200 series are expected to rise in price, while the 400 series remains firm due to regulatory challenges.

Stainless Steel Price:

• Nickel opened today down by 0.52% at $15,340/mt, while Copper opened today down by 0.62% at $9,413/mt.
• INR opened today against USD at 86.94/-.
• 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:

• The cash constraint is causing demand in the 300 series to marginally improve, but not significantly.
• Demand in the 400 series is also seen to be rising.
• Due to the lack of imported material, demand in the 200 series has climbed even more and is optimistic.
• As anticipated, No. 4 PVC material demand has continued to increase in recent months for both the 200 and 300 series.

Stainless Steel News:

• Researchers at NCKU Taiwan, led by Prof. Fei-Yi Hung, have developed 416B stainless steel, resistant to hydrogen embrittlement, improving safety for hydrogen storage and transport. They also introduced 420L for safer welding. The team is seeking a patent to support hydrogen energy advancements.
• The UK announced a £2.5 billion investment to boost domestic steel, promote green transition, and address US tariffs. Offshore wind projects alone may require 25M tons of steel by 2050, creating a £21B market.
• The US will impose a 25% tariff on imported steel from March, threatening Pohang’s steel sector and South Korea’s economy. Mayor Kangdeok Lee warns of widespread impacts on construction, auto, and shipbuilding industries.
• Thyssenkrupp warns that US tariffs may divert cheap steel from China to Europe, pressuring prices. Despite demand growth in packaging and electrical steel, the company faces declining sales. The China Iron and Steel Association criticized US steel tariffs for violating trade rules and raising domestic manufacturing costs. They urged a return to WTO frameworks to stabilize global trade.

Expert Opinion:

• In the current situation, 300 series prices are anticipated to increase due to the high USD.
• 400 series prices are expected to stay high due to the BIS issue.
• 200 series is also anticipated to do very well domestically due to limited imports.