Nickel Prices Surge, Stainless Steel Demand Grows

Key Insights

• Nickel and Copper Price Movements: Nickel up by 2.18% and copper by 0.39%, influencing stainless steel pricing.
• SS 304 CR and 316L HR Prices: Prices for 304 CR wider 2B at Rs.195-198/kg, while 316L HR material costs Rs.318-322/kg.
• Scrap Prices for Indian Producers: Scrap costs for 304 and 316L stainless steel range from Rs.1,27,886/mt to Rs.2,25,065/mt.
• Rising Demand for 200 Series: Increased demand for 200 series stainless steel due to shortages of imported material.
• ISSDA Recommendations: The ISSDA calls for a dedicated policy to boost stainless steel production and reduce import reliance in India.

Stainless Steel Price

• Nickel opened today up by 2.18% at $16,190/mt, while Copper opened today up by 0.39% at $9,227/mt.
• INR opened today against USD at 84.86/-.
• 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.
• China’s downstream stainless steel industry is expected to face both challenges and opportunities in 2025, with demand growing in construction, transportation, appliances, and machinery sectors. The demand for stainless steel in high-end manufacturing and smart homes is expected to continue rising, supported by emerging markets.
• The ISSDA recommends a separate policy for the stainless steel industry to address raw material supply and increase domestic production capacity.

Stainless Steel News

• In China, downstream stainless steel industries faced a complex market in 2024 but are set for growth in 2025 through innovation and emerging markets, despite competition and raw material price fluctuations. India’s ISSDA urges the government to create a stainless steel policy to enhance domestic capacity utilization (currently 60%) and reduce import reliance (30%). LME nickel futures rose by $143/mt to $15,858/mt, driven by China's market activity, though oversupply and weak demand remain concerns.

Expert Opinion

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