Nickel Gains, Stainless Steel Market Sees Mixed Demand Trends

Key Takeaways

• Nickel and Copper Trends: Nickel opened slightly higher at $16,315/mt, while copper dipped to $9,896/mt, reflecting mixed market signals.
• Rising Stainless Steel Prices: 304 CR wider 2B is now priced at Rs.197-199/kg, while SS 316L HR imported material is at Rs.318-322/kg.
• Demand Variations: 200 series demand remains strong due to import shortages, while 300 and 400 series show gradual improvements.
• Market Influences: Seasonal recovery and rising raw material costs are pushing Asian stainless steel prices up, but local demand remains cautious.
• Future Price Trends: The high USD and limited imports are expected to keep 300 and 400 series prices elevated, with 200 series performing well domestically.

Stainless Steel Price:

• Nickel opened today up by 0.25% at $16,315/mt, while Copper opened today down by 0.09% at $9,896/mt.
• INR opened today against USD at 86.67/-.
• 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:

• Asian stainless steel cold-rolled product prices increased last week due to seasonal demand recovery. Quotations from East and Southeast Asia increased, along with Taiwan’s prices, but local buyers remain cautious. In China, warming weather and higher raw material costs are also pushing prices up.
• In 2024, China’s crude stainless steel production reached 39.44 million mt, a 7.54% year-on-year increase, while apparent consumption grew 4.54% to 32.49 million mt. Zhang Zhifang of CISA emphasized the need for market adaptation, quality improvements, and green development to counter shrinking demand.
• Nickel pig iron prices rose in early March, with LME nickel at $16,000/mt. Indonesia’s Tsingshan raised export prices by $80/mt, prompting Taiwan’s mills to hike April prices by NT$3,000-4,000/mt ($100-120/mt). However, weak demand may limit further increases.
• Taiwanese mills expect further price hikes in April 2025 due to rising global nickel and ore prices.
• The EU plans ‘reciprocal’ export fees on scrap metals to counter trade restrictions by other countries.

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.