Stainless Steel Demand Rises Despite Cash Crunch and Supply Shortages

Key Takeaways

• Stainless Steel Prices Stable: 304 CR wider prices are at Rs.197-199/kg, with variations across grades and widths.
• 200 Series Demand Surge: Demand for 200 series stainless steel is increasing due to import shortages, boosting domestic market performance.
• Freight Rates Drop: Asia freight rates fell over 13% this year, easing transport costs for stainless steel imports.
• U.S. Tariff Concerns: Planned 25% U.S. tariffs on Canada and Mexico may disrupt global stainless steel and metals markets.

Stainless Steel Price:

• Nickel opened today down by 0.53% at $15,960/mt, while Copper opened today down by 0.37% at $9,251/mt.
• INR opened today against USD at 86.55/-.
• 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:

• 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 has been observed in the past few months.

Stainless Steel News:

• Freight rates from Asia fell significantly last week, with the Containerised Freight Index dropping 7% on Friday and over 13% since early 2025.
• U.S. President Trump announced plans to impose 25% tariffs on imports from Canada and Mexico by February 1, citing border concerns. This move could impact stainless steel and metal prices.
• AM/NS India will launch a $1 billion cold rolling mill in Gujarat by March as part of a $7.4 billion expansion. This auto-focused facility aligns with 'Make in India,' reducing import dependency and meeting export demands.
• Copper prices slipped 0.11% to Rs 831.85 as China maintained its lending rates. While China met its 5% growth target, copper inventories rose 12.9%, and December imports hit a 13-month high. U.S. tariff concerns and a refined copper deficit of 41,000 mt in October added market uncertainty.

Expert Opinion:

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