Nickel Prices Rise, Stainless Prices Steady Amid Improved Demand

Industry Highlights

• Stainless Steel Price Updates: LME's Nickel rose by 1.03% to $15,640/mt, while copper fell 0.36% to $9,525/mt. SS 304 CR wider 2B is Rs.197-199/kg, and SS 201 imported CR 2B is Rs.165-167/kg, ex-Delhi.
• Market Demand and Supply: 300 series demand is improving but remains limited due to cash constraints. 400 series demand is increasing, while 200 series surged due to import shortages. No.4 PVC demand is also rising.
• Industry News and Developments: Chromium ore prices are rising due to supply disruptions in Turkey and South Africa. EU revises CBAM policy, and Trump’s new tariffs on steel and aluminum won’t affect scrap metal imports.

Price:

• Nickel opened today up by 1.03% at $15,640/mt, while Copper opened down by 0.36% at $9,525/mt.
• INR opened against USD at 86.66/-.
• The retail price for 304 CR wider 2B is around Rs.197-199/kg (basic), ex-Delhi. Narrow is Rs.3-5/kg cheaper, plus GST. SS 316L HR imported material is Rs.318-322/kg for HR wider, with Indian material costlier by Rs.5-10/kg. CR wider rates are Rs.10/kg higher than HR.
• SS 201 imported CR 2B (extra-low thicknesses like 0.26mm) is retailing at Rs.165-167/kg, ex-Delhi, plus GST. Domestic 201 (cheapest grade) is at Rs.143-145/kg base price (plus thickness difference), plus GST.

Demand and Supply:

• 300 series demand is improving but remains limited due to a cash crunch.
• 400 series demand is increasing.
• 200 series demand has surged due to a shortage of imported material.
• No.4 PVC material demand is rising in both 200 and 300 series, continuing the recent trend.

News:

• The global stainless steel industry is witnessing increased demand for high-grade chromium ore due to a recovering market and tight supply. Stainless steel production in China and Europe has rebounded, raising procurement activity. Supply disruptions in Turkey and uncertain South African export policies are further pushing up chromium concentrate prices.
• On February 20, LME nickel futures rose by $261 to $15,665/mt, while the spot price increased by $269 to $15,453/mt. Nickel inventories at LME rose by 1,728 mt, reaching 192,180 mt. An Indonesian nickel plant faces ore shortages, disrupting ferronickel shipments, further driving up prices.
• Walsin Lihwa, a Taiwanese stainless steel wire rod manufacturer, reported that the Russia-Ukraine war has weakened European stainless steel demand, especially in the automotive sector. Higher energy costs and fluctuating nickel prices have squeezed profits. However, post-war reconstruction in Ukraine could boost demand, benefiting Walsin Lihwa’s European operations.
• Indonesia’s PT Gunbuster Nickel Industry, a subsidiary of China’s Jiangsu Delong Nickel Industry, is rumored to be shutting down due to payment failures for raw materials. Delong’s Indonesian production lines have already seen intervention by Chinese enterprises, and if the situation persists, the ferronickel smelter may completely cease operations.
• US metal recyclers believe President Trump’s new tariffs on primary steel and aluminium won’t impact scrap imports. The tariffs, effective from March 4, restore a 25% duty on steel imports and raise aluminium duties from 10% to 25%. However, recycled steel (HTS 7204) and aluminium (HTS 7602) are not included.

Expert Opinion:

• 300 series prices are expected to rise as USD remains strong.
• 400 series prices may stay high due to BIS issues.
• 200 series is likely to perform well domestically as import restrictions continue.