Nickel and Copper Show Mixed Trends, Stainless Steel Prices Remain Firm

Key Takeaways

• Steel Prices Hold Firm: The 300, 400, and 200 series maintain stable pricing, with minor variations due to import shortages and currency fluctuations.
• Global Trade Policies Impact Market: Taiwan extends anti-dumping duties on Chinese and Korean steel, while Kyrgyzstan continues its ferrous metal export ban.
• Nickel and Copper Fluctuate: Nickel prices dropped 1.61% to $16,150/mt, while copper rose 0.30% to $10,017/mt, influencing stainless steel costs.
• Indonesia Raises Nickel Royalties: The government is set to increase nickel mining royalties by at least 14%, impacting global supply costs.

Stainless Steel Price:

• Nickel opened today down by 1.61% at $16,150/mt, while Copper opened today up by 0.30% at $10,017/mt.
• INR opened today against USD at 86.24/-.
• 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:

• Demand for the 300 series is showing slight improvement, though not significantly, due to ongoing cash flow challenges.
• The 400 series is also witnessing a gradual rise in demand.
• The 200 series remains strong, driven by a shortage of imported material.
• No.4 PVC material demand continues to rise across both the 200 and 300 series, a trend that has been consistently observed over the past few months.

Stainless Steel News:

• Taiwan will extend anti-dumping duties on cold-rolled stainless steel flat-rolled products from China and South Korea for another five years, with rates of 38.11% and 37.65%, respectively. Initially imposed in 2013, the decision follows a second sunset review confirming that lifting the duties could lead to renewed dumping and harm domestic producers Yusco and Tang Eng. The measure applies to SUS 300 series cold-rolled stainless steel products under specific HS codes.
• Norilsk Nickel (Nornickel) is negotiating a joint venture with Chinese partners for copper production in China, with agreements expected soon. The project, included in Nornickel’s 2025-2026 budget, will relocate copper production from Norilsk to China due to modernization challenges and Western sanctions, with completion targeted for mid-2027.
• Indonesia is revising mineral and coal mining royalties, with nickel mining facing at least a 14% increase. Reports suggest new sustainability factors will be included in levies, prompting the industry to develop a long-term strategy to mitigate costs.
• Kyrgyzstan has extended its export ban on ferrous metal scrap and ingots for remelting until September 18, 2025. Initially imposed in August 2024, the measure aims to ensure sufficient raw materials for local steelmakers, with further extensions possible.

Expert Opinion:

• In terms of pricing, the 300 series is likely to see an upward trend due to the high USD exchange rate.
• Prices for the 400 series are also expected to stay elevated, influenced by the BIS issue.
• The 200 series is performing well in the domestic market as limited imports continue to support strong demand.