Nickel and Copper Dip; Stainless Steel Market Braces for Demand Uptick

Key Takeaways

• Price Trends: Nickel prices dipped 0.35% to $15,795/mt, while copper fell marginally to $9,050/mt. INR opened steady at 84.83 against USD.
• Retail Prices: Domestic 304 CR 2B prices range between Rs.195-198/kg. Imported 316L HR is Rs.318-322/kg, while 201 CR starts at Rs.143/kg base.
• Demand Growth: Demand for 200 and 400 series is rising due to material shortages and BIS regulations. SS 300 series sees slight improvement despite cash constraints.
• Industry Developments: Jsquare’s acquisition of Thyssenkrupp India signals growth in electrical steel, while ECB forecasts improved eurozone economic growth for 2025.

Stainless Steel Price

• Nickel opened today down by 0.35% at $15,795/mt, while Copper opened today down by 0.03% at $9,050/mt.
• INR opened today against USD at 84.83/-.
• Current retail price for 304 CR wider 2B is now running approximately at Rs.195-198/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.
• Indian flat stainless steel producers are buying scrap after the service of the finished-goods at the following latest prices (plus GST):- 304: Rs.1,27,886/mt 316L: Rs.2,25,065/mt J5 Patta: Rs.72,000/mt J8 Patta: Rs.70,000/-mt 430: Rs.56,317/mt

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

• According to TUIK, Turkey’s stainless steel plate imports hit 72,000 mt in October, a 79% year-on-year increase. China supplied 32,500 mt, doubling last year’s figures, followed by Indonesia (15,000 mt, up 66%) and South Korea (14,500 mt, tripling year-on-year).
• The Competition Commission of India cleared Jsquare Electrical Steel Nashik’s acquisition of Thyssenkrupp India, a GOES manufacturer. Jsquare is a subsidiary of JSW JFE Electrical Steel, set to begin GOES production in 2027.
• The ECB reduced its deposit rate to 3%, forecasting inflation to reach 2.1% by 2025. Despite modest growth of 0.7% in 2024, the eurozone's outlook improves, with projections of 1.1% in 2025 and 1.4% in 2026.

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.