Stainless Steel Market Sees Mixed Trends Amid Rising Nickel Prices and Demand Shifts

Key Takeaways

• Raw Material Price Update: Nickel rose by 0.03% to $16,100/mt; Copper declined by 0.30% to $9,084/mt.
• SS 300 Series Demand: Demand is slightly improving but remains sluggish due to ongoing cash flow issues in the market.
• SS 200 Series Demand: Increased significantly as imported material remains scarce, boosting domestic sales across thinner sections and finishes.
• Global Stainless Market: Projected to grow at a 6.2% CAGR, reaching $179.5B by 2031, driven by emerging market opportunities.

Stainless Steel Prices

• Nickel opened today up by 0.03% at $16,100/mt, while Copper opened today down by 0.30% at $9,084/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.
• As expected, No.4 PVC material demand is still on the rise as observed in the past few months, both in 200 and 300 series.

Stainless Steel News

• Indonesia's nickel miners, operating under the RKAB framework, face challenges as nickel smelters report ore shortages despite the country becoming a leading nickel producer since banning raw exports in 2020.
• The global stainless steel market, valued at $111.4B in 2022, is projected to grow at a 6.2% CAGR, reaching $179.5B by 2031, driven by emerging trends and market opportunities.
• India's renewable energy targets are threatened by declining copper production, dropping from 4.13M mt in FY19 to 3.78M mt in FY24. Copper concentrate imports have doubled, exposing the sector to price and geopolitical risks.

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.