Nickel Prices Drop, but Stainless Steel Demand Shows Promise in India

Key Takeaways

• Price Variations: Stainless steel prices vary across grades, with 304 CR wider at Rs.195-198/kg and 316L HR material priced at Rs.318-322/kg.

• Demand Growth: 200 series demand is especially strong, driven by shortages of imported material, while 300 and 400 series also show improvement, though weaker.

• Global Weakness: Weak demand for stainless steel in the USA, Germany, and China adds pressure on global prices, though the impact on Indian prices is less significant.

• Nickel and Scrap: Nickel prices have dipped, while scrap prices remain high for key grades like 304 and 316L.

• Expert Outlook: Prices for 200 series stainless steel are expected to remain strong due to limited imports, while 300 and 400 series face upward pressure due to the high USD and BIS issues.

Stainless Steel Prices

• Nickel opened today down by 0.47% at $15,975/mt, while Copper opened today down by 0.14% at $9,071/mt.

• INR opened today against USD at 84.73/-.

• Current retail price for 304 CR wider 2B is now running approximately at Rs.195-198/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.

• Indian flat stainless steel producers are buying scrap after the service of the finished-goods at the following latest prices (plus GST):-
  304: Rs.1,27,886/mt
  316L: Rs.2,25,065/mt
  J5 Patta: Rs.72,000/mt
  J8 Patta: Rs.70,000/mt
  430: Rs.56,317/mt
  

Stainless Steel Demand and Supply

• Demand is slightly getting better in 300 series, but not that much, due to cash crunch.
• In 400 series also, demand is seen to be increasing.
• 200 series demand has further increased and is upbeat, due to shortage of imported material.
• No.4 PVC material demand is still on the rise as expected, both in 200 and 300 series, as observed in the past few months.

Stainless Steel News

• As of last week, Stainless Steel CR Coil prices remained weak in the USA, Germany, and China due to low demand in key sectors like automotive and construction. Economic instability, high inventories, and competition from imports added to the pressure.

• On December 3, LME nickel prices rose sharply, boosted by a weaker US dollar and recovery in Chinese stainless steel futures. However, increasing nickel inventories could lead to short-term volatility.

• Trump opposes Nippon Steel’s acquisition of U.S. Steel, citing national security concerns. U.S. Steel warns of layoffs if the deal is blocked.

• Trump threatens 100% tariffs on BRICS imports if they create a competing currency to the US dollar.

• India’s government will allow market forces to set scrap vehicle prices, offering incentives for low-income groups and requiring eco-friendly disposal methods.

Expert Opinion

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