Stainless Steel Market Sees Rising Demand, Supply Constraints in May

Key Takeaways

• 300 Series Supply Tightness: Demand is rising, but supply remains limited, pushing expectations for higher prices in coming weeks.
• 200 Series Demand Growth: Strong domestic demand continues as imports remain low, especially for thinner CR material.
• Stable Retail Pricing: Prices for 304 and 316L remain steady, with slight variation between domestic and imported material.
• Scrap Prices Elevated: Producers are buying scrap at firm rates, indicating sustained input cost pressure.
• Import Concerns Mount: ISSDA calls for urgent safeguards as cheap imports rise 3% YoY, threatening domestic production.

Stainless Steel Price:

• Nickel prices at $15,480/MT, while copper prices at $9356/MT.
• INR opened today against USD at 84.27/-.
• 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.328/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 3/kg from above rates.
• 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 there is a shortage of supply.
• 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 in the past few months, both in 200 and 300 series.

Stainless Steel News:

• India's stainless steel industry has called for urgent government intervention, including safeguard duties, to curb the rising tide of cheap finished steel imports that threaten domestic manufacturers. The Indian Stainless Steel Development Association (ISSDA) highlighted the impact of high input costs and market instability, with ISSDA President Rajamani Krishnamurti advocating for stronger 'Make in India' measures like higher tariffs and trade protections.
• Jindal Stainless’ Vijay Sharma emphasized the challenge posed by Chinese-origin steel entering through ASEAN countries, while Rajputana Stainless CEO Yash Mehta warned that India risks becoming a dumping ground, urging action amid global trade tensions. With imports rising 3% year-on-year to 1.73 million mt in FY25, the issue will be a key focus at the Global Stainless-Steel Summit 2025.

Expert Opinion:

• 300 series prices are likely to see an upward trend.
• Prices for the 400 series are also expected to stay elevated.
• 200 series is also expected to do very well domestically due to limited imports.