SS Market Sees Mixed Demand and Steady Prices Amid Global Shifts

Price

• LME's nickel closed for the weekend yesterday, unchanged at $16,767/ton, while copper also closed unchanged at $9,235/ton. The INR closed against the USD at 83.89.
• The current retail price for 304 CR wider 2B is approximately Rs.198-201/kg (basic price, ex-Delhi), while for narrower sizes, it is about Rs.3-5/kg cheaper, plus GST.
• SS 316L imported material is now retailing at Rs.317-321/kg for HR wider. Indian material is priced Rs.5-10/kg higher. For CR wider, rates are Rs.10/kg higher than HR. SS 201 imported CR 2B (extra low thicknesses like 0.26mm) is being retailed at Rs.143-148/kg, ex-Delhi, plus GST.
• Domestic SS 201 (the cheapest grade) is now being retailed at Rs.140-143/kg (base price), with additional costs for thickness differences, plus GST.

Demand and Supply

• Demand has slightly improved for 304 & 316L (CR & HR), in generic sizes, compared to the last two months.
• There is little demand for ferritic grades, except for some usage in railway fabrication in 409M/X2CrNi12/IRSM 44-97 grades.
• Good demand is observed in No.4/Matte PVC finish in 201 grades, due to a short supply from domestic players and the non-renewal of BIS for imported material.
• Decent demand is also noted for 304 narrow sizes, for applications like pipes and tubes or rerolling, due to short supply in imported material.

News

• In the first half of 2024, India's finished stainless steel exports totaled approximately 355,000 tons, a 6% drop from the previous year. Exports of the 400 series fell by 27% to 11,340 tons, while the 300 series dropped 5% to 182,000 tons. However, the 200 series saw a 24% increase to around 8,700 tons. Italy accounted for 12% of total exports, followed by Germany, Belgium, and South Korea.
• India’s stainless steel export performance was hindered by increased Chinese export allocations. Due to reduced domestic demand, China exported stainless steel to Vietnam, the Middle East, Turkey, and India at dumped prices. Looking ahead, India's stainless steel production might remain low due to monsoon rains and Europe’s summer holidays. However, demand is anticipated to recover towards late 2024 and early 2025, boosting production levels.
• Taiwan’s Walsin Lihwa maintained domestic prices for its 200, 300, and 400 series stainless steel products, including copper-containing and 316 products. For exports, the 300 series base price increased by US$50/ton due to the Taiwan dollar's appreciation. Rising prices of LME nickel and stainless steel scrap are pressuring steel mills. Market expectations suggest the US Federal Reserve might cut interest rates, with European demand likely to recover post-summer.
• Analysts suggest that stainless steel prices in China have stabilized, with no room for further decline. The upcoming peak season and restocking of key raw materials like nickel indicate that prices could rise soon. Market reports suggest that demand is already beginning to increase, hinting at an upward trend in stainless steel pricing as the industry enters a more active phase in the coming months.
• As of August 23rd, US domestic stainless steel CR coil prices remained stable. In contrast, China saw a slight price drop amid a debt crisis affecting a major producer. The US market’s raw steel production utilization rate increased from the previous week. Additionally, US sanctions targeted Russian metals and mining companies, including steel, iron, and coal sectors, aiming to reduce Russia’s earnings from metal production by pressuring key industries.
• Germany experienced a minor 0.2% price reduction in stainless steel CR coil during the week ending August 23rd, amid concerns over European business challenges. Despite Outokumpu, a leading steel producer, posting better second-quarter profitability, challenges persist. To maintain profitability, manufacturers are focusing on cost competitiveness in commodity stainless steel production. Efforts are underway in Germany and Finland to enhance cost efficiency and optimize production processes.

Expert Opinion

• Both SS 304 & 316L are expected to have a medium to good run in the coming week, due to a slight increase in raw material prices.
• The SS 400 series continues its dull run due to a lack of demand for ferritic grades.
• The SS 200 series is still performing strongly in special finishes like N4P (Matte PVC) & N8P (Mirror PVC) due to the lack of imported products in the market.