Stainless Steel Market Sees Import Shortages and Rising Domestic Demand; Prices Steady

Key Takeaways

• Price Stability: Stainless steel prices are holding steady, with slight increases in the 300 and 400 series segments due to market dynamics.
• Growing Demand: SS 200 and 400 series see rising domestic demand amid limited imports and a favourable market outlook.
• Sustainability Investments: Outokumpu’s EUR40 million biocarbon project aims to cut emissions by 50%, highlighting the global push for greener steelmaking.
• Policy Developments: The European Commission considers new measures for steel import restrictions to help decarbonisation.
• Expert Forecasts: Rising USD and import challenges are likely to drive price increases, especially for the 300 and 200 series.

Stainless Steel Prices

• Nickel opened today up by 0.13% at $16,015/mt, while Copper opened today down by 0.24% at $9,101/mt.
• INR opened today against USD at 84.69/-.
• Current retail price for 304 CR wider 2B is now running approximately at Rs.195-198/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.
• Indian flat stainless steel producers are buying scrap after the service of the finished-goods at the following latest prices (plus GST):- 304: Rs.1,27,886/mt 316L: Rs.2,25,065/mt J5 Patta: Rs.72,000/mt J8 Patta: Rs.70,000/mt 430: Rs.56,317/mt

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.
• SS 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 observed in the past few months.

Stainless Steel News

• Outokumpu will invest EUR40 million in a biocarbon production plant in Sassnitz, Germany. The plant, utilizing waste wood, aims to produce 15,000 mt annually by 2026, supplying biocoke to its Finnish operations to cut emissions by up to 50%.
• The European Commission is exploring new import restrictions to support steel decarbonization, prioritizing energy cost reductions and addressing China’s overcapacity. Current safeguard measures expire in 2026, but alternatives consistent with WTO rules are under discussion.
• Scrap use in steelmaking must rise to 45-50% by 2050 to meet climate targets. Global policies supporting open trade and recycling infrastructure are essential for secondary steel production growth via electric-arc furnaces.

Expert Opinion

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