Stainless Steel Market Shows Mixed Trends, 200 Series Demand Remains Strong

Key Updates

• Price Trends: LME Nickel at $16,030/mt (-1.11%), Copper at $9,970/mt (+1.16%). 304 CR wider 2B at Rs.197-199/kg, SS 316L HR at Rs.318-322/kg; ex-Delhi.
• Global Developments: Taiwan struggles with China’s dumping, Outokumpu raised alloy surcharges for flat alloy products for Apr'25 deliveries, and the EU plans stricter import quotas from April 1.
• Industry Outlook: SS 300 and 400 series prices are expected to remain strong due to a high USD and BIS regulations, while 200 series sees growth.

Stainless Steel Prices

• Nickel opened today down by 1.11% at $16,030/mt, while Copper opened up by 1.16% at $9,970/mt.
• INR opened today against USD at 85.59/-.
• The current retail price for 304 CR wider 2B is approximately Rs.197-199/kg (basic price), ex-Delhi. For narrow material, it is Rs.3-5/kg cheaper, plus GST. SS 316L HR imported material is being retailed in the range of Rs.318-322/kg for HR wider, while Indian material is Rs.5-10/kg more expensive. 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 available in the range of Rs.143-145/kg (base price, plus thickness difference extra), plus GST.

Stainless Steel Demand and Supply:

• Demand is slightly improving in the 300 series but remains limited due to a cash crunch.
• The 400 series is also witnessing an increase in demand.
• The 200 series demand has further increased and remains upbeat due to a shortage of imported material.
• No.4 PVC material demand continues to rise in both the 200 and 300 series, a trend observed over the past few months.

Stainless Steel News:

• Taiwan's stainless steel industry has struggled due to China's overcapacity and low-price dumping. Despite the Trump administration's 25% tariffs on imported steel, stainless steel demand has not improved significantly. China’s economic decline and continued dumping have worsened the situation, making it difficult for Taiwan’s stainless steel factories to remain profitable.
• Outokumpu, a leading stainless steel producer, announced alloy surcharges for April 2025. The surcharge for 304 rose by $53 to $2,238/mt, while 316L increased by $70 to $3,693/mt. The 430 grade saw a $12 hike to $1,122/mt. These adjustments reflect rising costs compared to the previous month.
• Indonesia’s Tsingshan raised stainless steel prices six times in three weeks, increasing costs by $110-120/mt. A price hike exceeding NT$1,000/mt is expected in April, with some mills considering NT$5,000/mt. US export inquiries have increased, supporting higher transactions. Market participants predict a rise of NT$3,000-4,000/mt.
• The European Commission plans to tighten import quotas by 15% from April 1 to counter global overcapacity. A new safeguard measure will replace the current one expiring in 2026. Additionally, the EU will investigate aluminum imports and introduce a "melted and poured" rule to prevent circumvention of trade protection measures.
• ArcelorMittal South Africa has delayed closing its long products business as it seeks a capital injection. Talks with stakeholders, including the government, are ongoing regarding funding support. Without an agreement, closure remains inevitable. AMSA has also urged the government to abolish the scrap export tax, impose steel import tariffs, and reduce electricity and transportation costs.
• Asian nickel pig iron prices remained stable on Monday following last week’s rise in Philippine nickel ore prices. Indonesian NPI prices have surged over 4.2% since late February. This trend follows the recent increases in nickel ore prices, contributing to overall market stability in the region.

Expert Opinion:

• 300 series prices are expected to rise due to the strong USD.
• 400 series prices are likely to remain high due to BIS-related issues.
• 200 series is expected to perform well domestically as imports remain restricted.