Nickel Drops, But Stainless Steel Prices Hold Firm

Key Takeaways

• Nickel and Copper Prices: Nickel dropped by 1.41% to $16,485/mt, while copper saw a minor decline to $9,769/mt.
• Stainless Steel Demand: The 200 series remains strong due to limited imports, while the 300 and 400 series see gradual demand growth.
• Trade Tariffs Impact: The US imposed a 25% tariff on 166 South Korean steel products, impacting processed goods and SMEs, potentially disrupting supply chains and increasing costs for manufacturers reliant on Korean steel imports.
• Price Outlook: The 300 and 400 series prices are expected to rise, driven by high USD rates and supply constraints.

Stainless Steel Price:

• Nickel opened today down by 1.41% at $16,485/mt, while Copper opened today down by 0.02% at $9,769/mt.
• INR opened today against USD at 87.01/-.
• 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:

• Baosteel Desheng installed a new 417,000-mt VOD system at its Fuzhou plant to improve stainless steel quality, meeting demand in automotive, aerospace, and construction. The project was completed with Baosteel Engineering and SMS group.
• Trump halted plans to double tariffs on Canadian steel and aluminium after Ontario Premier Doug Ford reversed a 25% electricity surcharge. The US will still impose a 25% tariff starting Wednesday. Canada plans retaliatory measures, citing harm to businesses.
• Starting March 12, the US will impose a 25% tariff on 166 steel and aluminium products from South Korea under Section 232, impacting processed goods like bolts and springs. South Korea’s MOTIE is assisting affected exporters.
• Canada Nickel signed an agreement with First Nations for preferred access to US$2.5B Crawford Nickel Project contracts. The project, expected to be the world’s second-largest nickel reserve, aims for production by late 2026 or early 2027.

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.