Nickel and Copper Prices Increase; Stainless Steel Demand Remains Strong

Key Highlights

• Nickel and Copper Price Rise: LME's nickel and copper futures opened higher today, up 0.88% at $15,485/ton and 0.46% at $8,983/ton, respectively.
• Demand for SS 300 and 200 Series: Demand for SS 300 series is slightly improving, though still limited by cash crunch, with higher local prices. SS 200 series demand increases due to shortage of imported material, particularly in No.4 PVC material.
• Global Market Recovery Expected: Global stainless steel demand is forecasted to grow at 7.29% CAGR, with market recovery supported by US and China.

Stainless Steel Price

• Nickel opened today up by 0.88% at $15,485/ton, while Copper opened today up by 0.46% at $8,983/ton.
• INR opened today against USD at 84.99/-.
• The 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 more 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/kg base price (plus thickness difference extra), plus GST.

Stainless Steel Demand and Supply

• Demand is slightly improving in the 300 series, but not significantly, due to the cash crunch.
• In the 400 series, demand is also seen to be increasing.
• SS 200 series demand has further increased and is upbeat due to a shortage of imported material.
• No.4 PVC material demand is still on the rise, both in the 200 and 300 series, as observed in the past few months, as expected.

Stainless Steel News

• Taiwan’s Tang Eng expects market recovery post-Lunar New Year, supported by US and China economic stimulus. Domestic inventories have stabilized, boosting shipments. In H1, output and prices rose, but H2 faced weakness due to rising electricity costs and oversupply in China.
• Global stainless steel demand is projected to grow at a 7.29% CAGR, reaching US$228.8 billion by 2032. Despite challenges like oversupply and high electricity prices in Asia, market recovery is expected as economies stabilize, gradually improving conditions.
• Russia's stainless steel imports from January-July declined by 7.7%, totaling 258,000 tons. Imports of cold-rolled, hot-rolled steel, seamless pipes, and wires dropped, while welded pipes and billets grew. China was the dominant supplier, with India, Indonesia, Vietnam, and Turkey following.
• The Swiss Parliament will support the struggling steel industry by reducing electricity transmission network fees. The bill, effective January 1, 2025, provides fee reductions for four years, aiming to alleviate pressures caused by low demand, imported product prices, and high energy costs.
• Indonesia is considering reducing the 2024 nickel mining quota to address falling prices. Despite being the top producer, nickel prices have dropped 45% due to oversupply and underperforming demand, causing foreign producers to halt production and Indonesian smelters to face shortages.
• The Federal Reserve cut interest rates by 25 basis points, but a cautious stance from Fed Chair Powell sparked market turbulence. The strong US dollar pressured metal markets, while President Trump's proposals and economic data added uncertainty. Copper faces supply challenges in 2025.

Expert Opinion

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