Nickel and Copper Prices Dip, Stainless Steel Market Shows Steady Demand Growth

Stainless Steel Prices

• Nickel opened today down by 1.17% at $17,745/ton, while Copper opened today down by 0.83% at $9,847/ton.
• INR opened today against USD at 83.95/-.
• Current retail price for 304 CR wider 2B is now running approximately at Rs.198-201/kg basic price range, ex-Delhi, while for narrow, it is approximately Rs.3-5/kg cheaper, plus GST.
• SS 316L imported material is now being retailed in the price range of Rs.320-324/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. 143-148/kg, ex-Delhi, plus GST.
• Domestic 201 (cheapest grade) is now being retailed in the price range of Rs.140-143/- base price (plus thickness difference extra), plus GST.

Stainless Steel Demand and Supply

• Demand is slightly better in 304 & 316L (CR & HR), in generic sizes, as compared to previous 3 months.
• Not much demand is there in ferritic grades, except some railway fabrication usage in 409M/X2CrNi12/IRSM 44-97 grades.
• Good demand is being observed in No.4/Matte PVCfinish in 201 grades, due to short supply from domestic players, and non-renewal of BIS for imported material.
• Decent demand is also being observed in 304 narrow sizes, for applications like pipes and tubes or rerolling usages, due to short supply in imported material.

Stainless Steel News

• Indian steel producer Shyam Metalics and Energy Ltd. (SMEL) has started its stainless steel rebar production targeted for coastal regions.
• India’s Steel Ministry has proposed an increase of the basic customs duty on steel imports, seeking to increase the duty rate to 15% from the current 7.5%. The ministry has recommended to the finance ministry that safeguard measures should be considered due to the surge in steel imports from China, which accounted for around 33% of India’s total steel imports.
• The London Metal Exchange (LME) nickel futures price went up by US$403/ton and closed at US$17,994/ton on October 4. Meanwhile, the nickel spot price also increased by US$404/ton to US$17,743/ton.
• Driven by favourable policies such as US interest rate cuts and China's reserve requirement ratio reductions, the steel market has seen a strong rebound. Steel prices surged sharply at the end of September.

Expert Opinion

• Both 304 & 316L are expected to have a medium to good run this week, owing to the slight raw material price increase.
• The 400 series is continuing with its dull run, due to the lack of demand in ferritic grades.
• The 200 series is still performing strongly, in special finishes like N4P (Matte PVC) & N8P (Mirror PVC) owing to the lack of imported products in the market.