Stainless Steel Market Sees Demand Growth, Trade Tensions Loom

Key Highlights:

• Raw Material Prices: Nickel dropped 1.28% to $15,415/mt, while copper edged up to $8,989/mt.
• Retail Steel Prices: 304 CR wider 2B at Rs 197-199/kg (ex-Delhi), 316L HR imported at Rs 318-322/kg.
• Demand Trends: 200 series remains strong, while 300 and 400 series demand is gradually improving.
• Global Trade Risks: US may impose a 25% tariff on Canadian steel; EU debates import safeguards.
• Price Outlook: 300 and 400 series prices may rise due to currency strength and supply constraints.

Stainless Steel Price:

• Nickel opened today down by 1.28% at $15,415/mt, while Copper opened today up by 0.02% at $8,989/mt.
• INR opened today against USD at 86.58/-.
• 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 lack of imported material.
• No.4 PVC material demand is still on the rise as expected, both in 200 and 300 series, as observed in the past few months.

Stainless Steel News:

• The steel market in 2024 underperformed expectations, but demand is projected to rise in 2025 with global economic recovery. However, China’s overcapacity, low steel prices, and uncertainties around US trade policy may impact growth. The Fed’s expected rate cuts and potential reconstruction from the Russia-Ukraine war could boost the industry.
• The US may impose a 25% tariff on Canadian steel from February 1. In response, Canada is increasing exports before the deadline. A similar 2018 tariff led to a 38% drop in Canadian steel exports.
• Italy’s Assofermet opposes extending EU steel import safeguards beyond 2025, arguing they increase costs and uncertainty without solving market issues. They propose a more flexible quota system instead.

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, as imports are choked.