Nickel and Copper See Minor Drops, Stainless Steel Holds Firm

Key Takeaways

• Price Trends: Stainless steel prices remain steady despite nickel and copper seeing minor declines. 304 CR is priced at Rs 197-199/kg, while SS 316L HR is at Rs 318-322/kg (ex-Delhi).
• Market Demand: The 200 series is in high demand, while the 300 and 400 series continue to see moderate growth, influenced by cash constraints.
• Market Outlook: Prices for the 300 and 400 series are likely to remain firm due to high USD exchange rates and regulatory factors.
• Global Trade Issues: US trade actions and South Africa’s industry struggles are affecting global supply chains, adding uncertainty to market movements.
• Input Costs: Rising costs of nickel pig iron and ferrochrome are pushing stainless steel producers to adjust prices, despite weak global demand.

Stainless Steel Price:

• Nickel opened today down by 0.19% at $15,755/mt, while Copper opened today down by 0.02% at $9,388/mt.
• INR opened today against USD at 87.32/-.
• Current retail price for 304 CR wider 2B is now running approximately at Rs.197-199/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:

• 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:

• Taiwan’s Yusco and Walsin Lihwa raised stainless steel prices due to rising nickel pig iron and ferrochrome costs. However, weak demand and US trade policies add uncertainty.
• South Africa’s steel industry faces crisis as AMSA plans closures due to high energy costs and outdated infrastructure, with tariffs backfiring on local producers.
• In the US, steel associations praised the Leveling the Playing Field 2.0 Act, targeting unfair trade practices, particularly from China’s Belt and Road Initiative.
• First Quantum is seeking $30 billion in damages over Panama’s Cobre mine closure.
• Indonesia’s PT Merdeka Battery Materials secured a $1.4 billion loan for a nickel processing plant amid weak prices.

Expert Opinion:

• In the current situation, 300 series prices are anticipated to increase due to the high USD.
• 400 series prices are expected to stay high due to the BIS issue.
• 200 series is also anticipated to do very well domestically due to limited imports.