Nickel and Copper See Gains as Stainless Steel Demand Increases

Key Takeaways

• Nickel Price Rise: Nickel opens 1.11% higher at $15,965/mt, boosting price expectations.
• Stainless Steel Prices Stable: 304 CR in Delhi priced at Rs.195-198/kg, with minor fluctuations based on width.
• Increased Demand: The 200 and 400 series see heightened demand, driven by local shortages.
• LME Nickel Fluctuations: Nickel prices dropped but have rebounded, reaching $15,800 recently.
• Experts Predict Price Hikes: SS 300 and 400 series prices expected to rise due to domestic supply constraints.

Stainless Steel Price:

• Nickel opened today up by 1.11% at $15,965/mt, while Copper opened today up by 0.99% at $9,258/mt.
• INR opened today against USD at 86.60/-.
• 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 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 observed in the past few months.

Stainless Steel News:

• LME nickel prices fell to a three-year low of US$14,900/mt after the New Year but quickly rebounded to US$15,000 and have recently risen to US$15,800. The decline was largely driven by excess mining in Indonesia and weak global demand, particularly from battery manufacturers and the stainless steel sector.
• China’s stainless steel prices remain stable, with Shanxi Taigang increasing its prices by CNY 100/mt. Despite this, maintenance plans by producers and reduced nickel demand ahead of the Spring Festival may limit price movement.
• The US Department of Commerce (USDOC) rescinded the review of anti-dumping duties on certain stainless steel plates from Taiwan for May 2023–April 2024 due to no reviewable entries during the period.
• The LME is nearing approval for Hong Kong to join its global metals warehousing network, aimed at enhancing access to China’s industrial metals market. This move could increase LME trading volumes, although high storage costs may pose challenges.

Expert Opinion

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