Nickel Unchanged, Copper Rises, Stainless Steel Demand and Prices Vary

Key Insights

• Nickel and Copper Prices Update: Nickel remained steady at $15,240/mt, while Copper rose 0.19% to $8,894/mt, reflecting stability and minor gains in metal markets today.
• Rising Demand for Stainless Steel Grades: Demand for 200 and 400 series stainless steel is increasing due to limited imports and cash flow recovery, while 300 series demand shows modest improvement.
• Vietnam Steel Sector Recovery: Vietnam's steel industry anticipates recovery in 2025, driven by infrastructure investments and export opportunities, despite challenges from fluctuating costs and strict regulations.

Price

• Nickel opened today unchanged at $15,240/mt, while Copper opened higher by 0.19% at $8,894/mt.
• INR opened today against USD at 85.77/-.
• The current retail price for 304 CR wider 2B is approximately Rs.195-198/kg (basic price), ex-Delhi, while the narrow version is 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 costlier by Rs.5-10/kg. For CR wider, the rates are Rs.10/kg higher than HR.
• SS 201 imported CR 2B (extra low thickness like 0.26mm) is being retailed at Rs.165-167/kg, ex-Delhi, plus GST. Domestic SS 201 (cheapest grade) is now being retailed in the price range of Rs.143-145/kg (base price, thickness difference extra), plus GST.

Demand and Supply

• Demand is slightly improving in the 300 series but not significantly due to a cash crunch.
• In the 400 series, demand is also seen increasing.
• The 200 series demand has further increased and is upbeat due to a shortage of imported material.
• No.4 PVC material demand continues to rise in both the 200 and 300 series, as observed over the past few months, as expected.

News

• Philippines Nickel Mining Reforms: President Marcos Jr. proposed reforms to strengthen the mining sector, including better taxation and environmental safeguards. The Philippines, the second-largest nickel producer, aims to boost output for clean energy markets with a royalty system based on mine locations.
• South Korea Anti-Dumping Duty on Vietnam Steel: South Korea has imposed anti-dumping duties on Vietnamese cold-rolled stainless steel products from December 19, 2024, to April 18, 2025. Rates range from 3.66% to 11.37%, targeting specific exporters to protect domestic industries.
• Turkey’s Scrap and Steel Production Growth: Turkey's scrap imports rose 6.5% YoY to 18.2 million tons, projected to hit 20 million in 2024. Crude steel output grew 11.2% YoY to 33.9 million tons, with the US, Netherlands, and UK as the top scrap suppliers.
• China Winter Steel Storage Outlook: Northern Chinese mills have initiated winter storage amid subdued demand forecasts and ample capacity. Modest steel output growth is expected in 2025, driven by real estate stability, infrastructure, and exports, despite rising global trade protectionism.
• Suez Canal Expansion Milestone: Egypt’s new 10-km Suez Canal section now allows two-way ship traffic, increasing dual-lane stretches to 82 km. The expansion addresses past disruptions but faces risks from Red Sea attacks. Revenue losses in 2024 amounted to $7 billion.
• Vietnam’s Steel Industry Prospects: Vietnam's steel sector benefits from infrastructure investments and export opportunities in US, EU, and ASEAN markets. However, challenges include fluctuating input costs and environmental regulations. Prices for construction steel and hot-rolled coils are expected to recover in 2025.

Expert Opinion

• SS 300 series prices are expected to rise, given the recent scenario of a high USD rate.
• SS 400 series prices are likely to remain on the higher side due to the BIS issue.
• SS 200 series is expected to perform very well domestically as imports remain restricted.