Nickel, Copper Rise; Experts Forecast Dull Demand for 300, 400 Series Stainless Steel

Nickel and copper prices opened slightly higher, reflecting some recovery. The 300 and 400 series demand remains weak due to limited market liquidity, though demand for 200 series PVC finishes remains firm amid import shortages.

Key Takeaways

  • Market Prices: Nickel and copper show slight increases.
  • Demand Trends: 300 series stainless steel sees low demand, especially in the lead-up to holidays, while 200 series retains demand due to limited imports.
  • Global Nickel Market Oversupply: Analysts note a significant surplus in the nickel market, keeping prices under pressure even with recent production cuts.

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Stainless Steel Prices

  • Nickel opened today up by 0.09% at $16,275/ton, while Copper opened today up by 0.25% at $9,531/ton.
  • INR opened today against USD at 84.07/-.
  • Current retail price for 304 CR wider 2B is now running approximately at Rs.198-201/kg basic price range, ex-Delhi, while for narrow, it is approximately Rs.3-5/kg cheaper, plus GST.
  • SS 316L imported material is now being retailed in the price range of Rs.320-324/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. 143-148/kg, ex-Delhi, plus GST.
  • Domestic 201 (cheapest grade) is now being retailed in the price range of Rs.140-143/- base price (plus thickness difference extra), plus GST.

Stainless Steel Demand and Supply

  • Demand has gone down at present for 300 series, due to lack of funds, in the market.
  • Even in ferritic grades, demand is not that great.
  • 200 series demand is still there, due to lack of imported material.
  • No.4 PVC material demand is on the rise, both in 200 and 300 series, due to lack of production of this finish from the domestic suppliers & scarce availability of stock.

Stainless Steel News

  • The Korea Trade Commission (KTC) has announced a preliminary anti-dumping (AD) duty on cold-rolled stainless steel products imported from Vietnam.
  • Italian equipment supplier Danieli Group has revealed plans to invest EUR 572 million over five years to enhance plant energy efficiency and waste recycling, targeting sustainability.
  • According to the World Stainless Association, stainless steel melt shop production rose by 6.3% year-on-year to 30.4 million metric tons in the first half of 2024. However, nickel prices are under pressure due to a significant market surplus and the discovery of nickel deposits in Papua New Guinea.

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Expert Opinion

  • The 300 series is expected to have a dull run in the present and upcoming week, because of payment shortage and upcoming festive holidays.
  • The 400 series performance is also expected to be dull, except 410S grade, where there will be considerable demand in thinner gauges.
  • The 200 series is expected to be performing satisfactorily, in special finishes like N4P (Matte PVC) & N8P (Mirror PVC) owing to the lack of imported products in the market.