Nickel and Copper Prices Dip; Stainless Steel Market Awaits Price Movement

Key Highlights:

• Current Stainless Steel Prices: 304 CR wider 2B is priced around Rs. 197-199/kg in Delhi, while SS 316L HR imported material is at Rs. 318-322/kg.
• Demand Trends: Demand in 300 and 400 series remains moderate, while 200 series sees an increase due to limited imports.
• Nickel & Copper Trends: Nickel opened at $15,600/mt, down by 1.20%. Copper opened today down by 0.55% at $9,173/mt.
• Taiwanese Price Adjustments: Taiwanese mills may revise prices after the Lunar New Year, with hopes for stabilization amidst weak demand.
• China’s Stainless Steel Export Surge: China’s stainless steel exports surged 38.8% yearly in December, indicating ongoing oversupply despite weak domestic demand.

Stainless Steel Prices:

• Nickel opened today down by 1.20% at $15,600/mt, while Copper opened today down by 0.55% at $9,173/mt.
• INR opened today against USD at 86.43/-.
• 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 has been observed in the past few months.

Stainless Steel News:

• Taiwanese stainless steel mills may announce new rates after the Lunar New Year. Manufacturers hope prices stabilize, but demand remains weak. LME nickel prices rebounded, but U.S. trade policies and import competition limit price hikes.
• China’s ferronickel imports hit a record 995,000 mt in December, mainly from Indonesia. Exports of stainless steel increased 6.01% monthly and 38.8% yearly in December, while imports grew slightly but dropped yearly. Net exports soared 53.23%, showing oversupply.
• LME nickel futures increased by $5 on January 20 to $16,135/mt, reflecting small fluctuations.
• Stainless steel prices in China rebounded, boosted by nickel policies and economic growth. However, demand is weak as the Lunar New Year approaches.

Expert Opinion:

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