Stainless Steel Market Outlook: 200 Series Strengthens, Flat Demand in 300 Series
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Stainless steel prices remain steady across most grades, with the 200 series showing bullish momentum due to limited imports. While 300 series demand is subdued, select shortages are supporting price stability. Scrap procurement remains active, and long-term sector growth is driven by infrastructure and urbanization, as highlighted by ISSDA data.
Key Highlights:
- 200 Series Gains Strength: Domestic demand is firm due to a lack of imported material, driving optimism across buyers and producers.
- Flat Trend in 300 Series: Prices are stable, but consumption is below expectations, with patchy shortages supporting current levels.
- Demand Growth Backed by Infra Push: ISSDA reports 84% stainless steel demand growth in 5 years, driven by transport, construction, and urban infra.
- Scrap Procurement Active: Mills continue buying scrap actively; 304 scrap is quoted at ₹1,27,886/MT, and 316L at ₹2,25,065/MT (plus GST).
Nickel, Copper, INR, HRC & CRC Movement
- Nickel Prices at $14955/ton, while Copper prices at $9707/ton.
- INR opened today against USD at 85.87/-
- Current retail price for 304 CR wider 2B is now running approximately at Rs.189-194/kg basic price range, ex-Delhi, while for narrow, it is approximately Rs.8-10/kg cheaper. Plus GST.SS 316L HR imported material is now being retailed in the price range of Rs.334/kg for HR wider. Indian material is expensive by Rs.5/kg.
- For CR wider, the rates are Rs.5/kg higher than HR.SS 201 imported CR 2B (extra low thicknesses like 0.26mm) is being retailed at Rs. 163-165/kg, ex-Delhi, plus GST. Domestic 201 (cheapest grade) is now being retailed in the price range of Rs.138-142/- base price (plus thickness difference extra), plus GST.
- In case of 1500 width extra Rs 4/kg from above rates for N4 finish in 300 series.
- Latest Scrap Purchase Prices by Indian Flat Stainless Steel Producers (excluding GST):
- Grade 304: ₹1,27,886 per metric ton
- Grade 316L: ₹2,25,065 per metric ton
- J5 Patta: ₹72,000 per metric ton
- J8 Patta: ₹70,000 per metric ton
- Grade 430: ₹56,317 per metric ton
Demand & Supply Analysis by Grade
- In the 300 series, demand has generally weakened across sectors. However, this does not imply an oversupply. In fact, despite soft demand, there are instances where certain grades or sizes are facing material shortages, possibly due to supply chain disruptions, selective procurement, or production cuts.
- On the other hand, the 400 series is witnessing a gradual uptick in demand, indicating that end-user segments (like automotive, kitchenware, and electrical appliances) are showing more activity.
- The 200 series continues to show strong and rising demand, primarily because of a shortfall in imported materials. Import constraints—whether due to logistical issues, trade restrictions, or high global prices—have shifted the buyers' focus to domestic alternatives. As a result, local producers of 200 series grades are benefiting from this import gap, keeping the market buoyant.
- Lastly, No.4 PVC-coated stainless steel sheets, known for their decorative finish and corrosion resistance, continue to see sustained demand growth in both the 200 and 300 series.
Sector News: Domestic Demand Soars to 4.8 MT in FY25
- India’s domestic stainless steel consumption has witnessed a robust growth of 84% over the past five years, reaching 4.80 million tonnes in FY 2024-25, according to the Indian Stainless Steel Development Association (ISSDA).
- This surge in demand has been largely driven by sectors such as infrastructure, railways, airports, and metro rail projects, as highlighted by ISSDA President Rajamani Krishnamurti at the Global Stainless Steel Expo (GSSE) 2025.
- As per ISSDA data, consumption stood at 2.61 million tonnes in FY 2020-21, rising sharply to 3.46 million tonnes in FY 2021-22 (a 33% year-on-year increase), 3.94 million tonnes in 2022-23, and 4.49 million tonnes in 2023-24, before finally reaching 4.80 million tonnes in FY25.
- Additionally, per capita consumption has improved from 2.5 kg in FY21 to 3.4 kg in FY25, marking a 36% increase, reflecting deeper market penetration and broader use of stainless steel across key growth sectors.
Expert Opinion & Price Outlook
Prices across stainless steel series are showing varied trends:
- 300 series prices are expected to remain stable,
- 400 series prices are likely to stay on the higher side,
- 200 series is anticipated to perform strongly in the domestic market, supported by robust demand.
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