Nickel and Copper Prices Rise; Demand for 304 & 316L Stainless Steel Improves

Price

• Nickel opened today up by 0.15% at $16,495/ton, while copper opened today up by 0.48% at $9,522/ton.
• INR opened today against USD at 83.58/-.
• The current retail price for 304 CR wider 2B is approximately Rs.198-201/kg (basic price range), ex-Delhi, while narrow is approximately Rs.3-5/kg cheaper, plus GST.
• SS 316L imported material is now being retailed in the price range of Rs.317-321/kg for HR wider. Indian material is Rs.5-10/kg more expensive. For CR wider, rates are Rs.10/kg higher than HR. SS 201 imported CR 2B (extra low thickness like 0.26mm) is being retailed at Rs.143-148/kg, ex-Delhi, plus GST. Domestic 201 (the cheapest grade) is now being retailed in the range of Rs.140-143/kg base price (plus extra for thickness difference), plus GST.

Demand and Supply

• Demand is slightly better for 304 & 316L (CR & HR) in generic sizes compared to the previous 2 months.
• Ferritic grades are seeing minimal demand, except for some railway fabrication usage in 409M/X2CrNi12/IRSM 44-97 grades.
• Good demand is observed for No.4/Matte PVC finish in 201 grades due to short supply from domestic players and non-renewal of BIS for imported material.
• Decent demand is also seen in 304 narrow sizes, especially for pipes, tubes, or rerolling uses, due to short supply of imported material.

News

• Chien Shing Stainless Steel Co., Ltd. reduced its capital by NT$1.085 billion, eliminating 108 million shares (38.6%). Each stock will reduce by 385.92 shares, exchanged for 614.08 shares. Fractional shares must be consolidated before the share transfer, and remaining fractions will be paid in cash. An extraordinary shareholders' meeting is scheduled for November 6 in Tainan City.
• On September 19, LME nickel futures rose by US$100/ton, closing at US$16,333/ton. Nickel spot prices increased by US$116.5/ton to US$16,097/ton. LME nickel inventory rose by 198 tons, reaching 123,924 tons. Nickel prices remained above US$16,000 for four days, supported by a weakening US dollar and expectations of Fed rate cuts.
• On September 19, LME copper prices surged following a US Federal Reserve rate cut. Despite China’s refined copper output reaching 1.12 million tons in August, global supply remained tight. LME inventories dropped, particularly in Europe and Asia. Bank of America predicts copper prices will surpass US$10,000 per ton by 2025, despite challenges from a stronger US dollar.
• Plans for two new nickel trading platforms stalled after BHP Billiton suspended two nickel projects. LME nickel lost favor after a March 2022 meltdown, but BHP’s delay helped the LME retain dominance. Both initiatives, backed by BHP, require alternative nickel supply, with BHP’s volumes critical for competing effectively with the LME.
• Base metals on SHFE performed positively, with tin leading at +2.2%, followed by copper (+1.3%), lead (+1.2%), zinc (+0.9%), nickel (+0.7%), and aluminum (+0.6%). On LME, nickel rose by nearly 1%, trading around US$16,500/MT. The LME Index (LMEX) gained approximately 0.98% on Thursday, reflecting broader strength in the metal markets.

Expert Opinion

• Both 304 & 316L are expected to see medium to good demand this week, driven by the slight raw material price increase.
• The 400 series continues its dull performance due to low demand for ferritic grades.
• The 200 series is still performing strongly in special finishes like N4P (Matte PVC) & N8P (Mirror PVC) due to the limited availability of imported products.