Stainless Steel Market Mixed as Demand Diverges, Global Tariffs Add Uncertainty

Key Highlights

• Prices & Metals: Nickel at $15,325/t; copper at $9,964/t; INR opened at 88.69/USD.
• Stainless Steel Rates: 304 CR wider 2B ₹200–205/kg; 316L HR imported ~₹350/kg; scrap 304 at ₹1,27,886/MT.
• Demand Trends: 300 series weak; 400 series firming; 200 series upbeat amid import shortage.
• Global Policy Impact: U.S. tariffs and potential EU curbs driving sourcing shifts and delaying orders.

Spot Prices for Base Metals and Key Stainless Grades

• Nickel is trading at $15,325/ton, while copper is at $9,964/MT. The INR opened at 88.69/USD.
• The current retail price of 304 CR wider 2B is ₹200–205/kg (basic), with HR around ₹194–197/kg ex-Delhi. 
• Narrow-width material trades at about ₹8–10/kg lower. Imported 316L HR wider retails at ₹350/kg, with Indian material costlier by ₹5/kg. 
• CR wider rates are also ₹5/kg higher than HR. Imported 201 CR 2B (0.26 mm) is priced at ₹166–169/kg ex-Delhi, while domestic 201 (cheapest grade) trades at ₹142–146/kg (plus thickness extras). For 1500 width N4 finish in the 300 series, add ₹4/kg.

Indian flat stainless steel producers are purchasing scrap at the following rates (plus GST):

• 304: ₹1,27,886/MT
• 316L: ₹2,25,065/MT
• J5 Patta: ₹72,000/MT
• J8 Patta: ₹70,000/MT
• 430: ₹56,317/MT

Domestic Demand Patterns Across Series

• 300 series: Demand down, though selective shortages exist.
• 400 series: Demand gradually increasing.
• 200 series: Demand upbeat due to limited imports.
• No.4 PVC material: Demand continues to rise in both 200 and 300 series, consistent with past trends.

International Tariffs and EU Import Controls Shape Market Moves

• At least one-third of companies have paused or delayed stainless steel orders due to U.S. import tariffs (up to 50%), according to Outokumpu. More than half are reassessing sourcing strategies. 
• Outokumpu’s CEO noted that weak global demand makes EU import quotas excessive, and new measures to curb imports may be announced by October, possibly coming into effect earlier than planned.
• The U.S. has also expanded its tariff list to include derivative products, creating further uncertainty for equipment and machinery buyers. 
• Meanwhile, Outokumpu has developed a low-emissions alloy containing 99% chromium (vs. 53% previously) and plans to scale up production to one ton per day in a new pilot plant.

Near-Term Outlook

• 300 series: Prices expected to remain stable.
• 400 series: Prices likely to trend higher.
• 200 series: Strong domestic performance anticipated.