Nickel, Copper Prices Fall, Demand for Stainless Remain Supported

Key Highlights

• Nickel and Copper Prices Decline: Nickel fell 0.33% to $15,170/mt, and Copper dropped 0.16% to $8,989/mt, reflecting cautious market sentiment.
• Demand Upbeat in 200 and 400 Series: Demand for the 200 series surged due to limited imports, while the 400 series saw steady growth, indicating improving market dynamics.
• India Extends Safeguard Investigation Deadline: India's DGTR extended the filing deadline for steel safeguard investigations to January 22, 2025, aiming to protect domestic industries from import surges.

Stainless Steel Price

• Nickel opened today down by 0.33% at $15,170/mt, while Copper opened today down by 0.16% at $8,989/mt.
• INR opened today against USD at 85.70/-.
• The current retail price for 304 CR wider 2B is now approximately Rs.195-198/kg (basic price range), ex-Delhi, while for narrow widths, 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 costlier 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 (the 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 & Supply

• Demand is slightly improving in the 300 series, but not significantly, due to a cash crunch.
• In the 400 series, demand is also seen to be increasing.
• The 200 series demand has further increased and is upbeat due to the paucity of imported material. No.4 PVC material demand continues to rise in both the 200 and 300 series, as observed over the past few months.

News

• Green Hydrogen Projects: In 2024, numerous green hydrogen projects were canceled due to unmet cost-reduction expectations. High production costs and complex processes hinder adoption. Clean hydrogen remains four times pricier than alternatives. Projects like Orsted's $175M plant were scrapped. Only China and India may achieve competitive costs by 2040, despite growth projections.
• Mirador Copper Mine Resumes Operations: Tongling Nonferrous announced that the Mirador Copper Mine resumed operations on January 1, 2025, following Ecuador’s power rationing shutdown. The mine is a core asset for the company, impacting revenue and performance. Resuming production stabilizes revenue, offsets losses, and demonstrates resilience, marking a key milestone for Tongling Nonferrous's operations.
• Argentina Lifts Scrap Export Restrictions: Argentina ended scrap and metal waste export restrictions imposed since 2009 to protect local steel industries. This deregulation fosters recycling, boosts economic opportunities for SMEs, and opens international markets. The government anticipates an improved trade balance, making recyclables a new revenue source. Positive economic impacts are expected from this measure.
• India Extends Safeguard Investigation Filing Deadline: India's DGTR extended the filing deadline for safeguard investigations on non-alloy and alloy steel flat imports to January 22, 2025. No further extensions will be granted. The investigation protects India’s steel industry from import surges, addressing concerns raised by interested parties about potential injury caused by increased imports.
• Taiwan’s Feng Hsin Steel Holds Prices: Taiwan’s Feng Hsin Steel maintained scrap prices at NT$8,400/ton, rebar at NT$18,000/ton, and section steel at NT$24,800/ton. International scrap quotations remain unavailable. Rebar prices stay flat, and mills continue order negotiations. Australia’s iron ore prices fell 0.4% to US$98.6/ton, reflecting a cautious steel market outlook.
• US Economy Strengthens in December: US initial jobless claims hit an 8-month low by December 28, 2024, while unemployment benefit claims fell. The ISM Manufacturing PMI improved to 49.3, signaling recovery. New orders and production indexes exceeded 50, showing growth. These indicators boost confidence, driving market optimism and supporting rising share prices.

Expert Opinion

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