Nickel and Copper Prices Rise as Stainless Steel Market Remains Strong

Key Takeaways

• Stainless Steel Prices: 304 CR wider 2B remains at Rs.199-200/kg, while 316L HR imported is Rs.320-323/kg. Domestic 201 CR is priced at Rs.143-145/kg.
• Scrap Prices: Indian mills are procuring 304 scrap at Rs.1,27,886/MT and 316L scrap at Rs.2,25,065/MT. 
• Market Demand: 300 series demand is marginally improving due to cash constraints, 400 series demand is rising, and the 200 series is witnessing strong growth due to import restrictions. 
• Major Developments: Jindal Stainless is investing Rs.40,000 crore in a Maharashtra plant; Taiwan’s 304 stainless prices have increased for the third consecutive month.
• Expert Outlook: Prices in the 300 and 400 series are expected to remain high, while the 200 series will continue to perform well due to import shortages.

Stainless Steel Price:

• Nickel opened today up by 1.41% at $16,170/mt, while Copper opened today up by 0.54% at $9,762/mt.
• INR opened today against USD at 85.49/-.
• Current retail price for 304 CR wider 2B is now running approximately at Rs.199-200/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.320-323/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:

• The cash constraint is causing demand in the 300 series to marginally improve, but not significantly.
• Demand in the 400 series is also seen to be rising. 
• Due to the lack of imported material, demand in the 200 series has climbed even more and is optimistic.
• As anticipated, No. 4 PVC material demand has continued to increase in recent months for both the 200 and 300 series.

Stainless Steel News:

• Jindal Stainless Limited plans to invest Rs 40,000 crore in a Maharashtra stainless steel plant, with a 4-million-mt melting capacity over 10 years. The first phase, completed in four years, will serve industries like hydrogen, nuclear energy, and defence.
• LME nickel futures rose on March 28 due to a weak dollar, strong Chinese stainless steel futures, and low inventory. Prices increased 6.87% YTD, with short-term volatility expected.
• Taiwan’s Tang Eng Iron Works raised 304 stainless steel prices by NT$4,000/ton for April, marking the third consecutive monthly hike due to rising costs.
• Protests have blocked access to Glencore’s Antapaccay copper mine in Peru over environmental concerns regarding expansion plans. The government is monitoring the situation.
• The US, Russia, and Ukraine reached an agreement to secure Black Sea commercial shipping, impacting global grain, fertilizer, and coal trade, though geopolitical risks remain.
• The EU auto industry opposes Trump’s 25% import tariff, warning of negative effects on US and European automakers, as well as the European steel industry, which relies heavily on automotive demand.

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.