Nickel & Copper Prices Dip, Stainless Steel Demand Strong Across Series

Key Takeaways

• Price Trends: Stainless steel prices remain stable, with slight variations based on grade and series. Nickel and copper prices opened lower.
• Demand Shifts: The 200 series continues to perform well, while the 300 series sees a minor recovery, and the 400 series gradually strengthens.
• Global Factors: The European Commission's potential import quota reforms and US steel cost increases are affecting market sentiment.
• Market Outlook: Prices for the 300 series may rise due to a strong USD, while the 400 series stays firm due to BIS regulations.

Stainless Steel Price:

• Nickel opened today down by 0.03% at $15,605/mt, while Copper opened today down by 0.39% at $9,424/mt.
• INR opened today against USD at 87.26/-.
• 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 for the 300 series is showing slight improvement, though not significantly, due to ongoing cash flow challenges.
• The 400 series is also witnessing a gradual rise in demand.
• The 200 series remains strong, driven by a shortage of imported material.
• No.4 PVC material demand continues to rise across both the 200 and 300 series, a trend that has been consistently observed over the past few months.

Stainless Steel News:

• The European Commission plans to adjust import quotas, potentially shifting to a national quota system, but weak demand is slowing hot-rolled price gains. Steel mills are raising prices, yet large volumes of pending imports are limiting further increases.
• In the US, rising steel costs and trade policies are hitting manufacturers like Ford and GM, increasing supply chain expenses.
• The EC will launch a steel industry dialogue on March 4 to address competitiveness, energy costs, and trade issues, with France and Italy pushing for reforms.
• Asian nickel pig iron prices hit a yearly high due to reduced Indonesian production and declining ore quality.

Expert Opinion:

• In terms of pricing, the 300 series is likely to see an upward trend due to the high USD exchange rate.
• Prices for the 400 series are also expected to stay elevated, influenced by the BIS issue.
• The 200 series is performing well in the domestic market as limited imports continue to support strong demand.