Stainless Steel Demand Rises Amid Limited Imports & Currency Fluctuations

Key Takeaways

• Nickel Prices Up: Nickel opened at $16,345/MT, continuing its upward trend, while copper declined by 0.61% to $9,675/MT.
• Steel Prices Firm: 304 CR wider 2B holds at Rs 197-199/kg, and 316L HR remains Rs 318-322/kg, with Indian material priced higher.
• Rising Demand: 200 series demand is strong due to limited imports, while 300 and 400 series continue to see gradual improvement.
• Global Trade Actions: Mexico, South Korea, and the EU are tightening anti-dumping measures, while China plans to cut steel production.
• Market Outlook: Prices for the 300 and 200 series are expected to rise, driven by currency fluctuations and constrained supply.

Stainless Steel Price:

• Nickel opened today up by 0.09% at $16,345/mt, while Copper opened today down by 0.61% at $9,675/mt.
• INR opened today against USD at 87.11/-.
• Current retail price for 304 CR wider 2B is now running approximately at Rs.197-199/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.

Stainless Steel Demand and Supply:

• The cash constraint is causing demand in the 300 series to marginally improve, but not significantly.
• Demand in the 400 series is also seen to be rising.
• Due to the lack of imported material, demand in the 200 series has climbed even more and is optimistic.
• As anticipated, No. 4 PVC material demand has continued to increase in recent months for both the 200 and 300 series.

Stainless Steel News:

• Toyota Material Handling Europe partnered with SSAB to use SSAB Zero steel in pallet truck forks and frames, cutting CO2 emissions by 77%. This supports Toyota’s goal of net-zero emissions by 2041.
• Mexico's Ministry of Economy launched an anti-dumping investigation into hot-rolled steel imports from China and Vietnam, following claims from Ternium Mexico of unfair pricing. The probe covers imports from September 2023 to August 2024.
• South Korea’s Trade Commission is investigating anti-dumping claims on carbon and alloy steel hot-rolled products from Japan and China, based on a complaint from Hyundai Steel. The investigation spans July 2023 to June 2024.
• China plans to cut steel production to restructure the industry and reduce carbon emissions. The NDRC's announcement signals tighter regulation amid global concerns over rising Chinese steel exports.
• The European Commission held a Strategic Dialogue on Steel, with EU nations pushing for stronger anti-dumping measures and carbon policies. Steel overcapacity is expected to rise 27% by 2026. US President Trump’s mention of a potential 25% tariff on copper caused prices to surge over 5% in New York and 2.69% on the LME.
• US steel scrap prices are expected to rise as tight supply persists despite improved weather conditions.
• India’s stainless steel scrap imports fell 5% in April-Jan FY’25 due to higher billet imports, domestic production, and weak demand amid US tariff concerns.

Expert Opinion:

• In the current situation, 300 series prices are anticipated to increase due to the high USD.
• 400 series prices are expected to stay high due to the BIS issue.
• 200 series is also anticipated to do very well domestically due to limited imports.