Stainless Steel Market Shows Upside Potential with Rising Demand and Price Adjustments

Stainless steel prices are rising, driven by higher production costs and increased demand across 200, 300, and 400 series materials. Global producers like POSCO and Outokumpu have raised alloy surcharges, and India’s steel prices are also on the rise. Expert opinion indicates the continuation of upward price trends, influenced by currency fluctuations, economic uncertainties, and trade policies.

Key Takeaways

  • Price Trends: Stainless steel prices are increasing, with 304 CR and SS 316L HR prices reaching higher retail levels due to material shortages.
  • Demand Growth: The demand for stainless steel, especially 200, 300, and 400 series, is rising due to limited imports and improving market conditions.
  • Global Price Adjustments: POSCO and Outokumpu have raised alloy surcharges for key stainless steel grades, citing rising production costs.
  • Expert Opinion: Prices for 300 and 400 series stainless steel are expected to rise further, with market volatility anticipated due to US tariffs and China's economic challenges.

Stainless Steel..png

Stainless Steel Prices

  • Nickel opened today up by 0.88% at $15,435/mt, while Copper opened today up by 0.92% at $8,849/mt.
  • INR opened today against USD at 85.73/-.
  • 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.

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 lack of imported material.
  • No.4 PVC material demand is still on the rise as expected, both in 200 and 300 series, in the past few months.
  • YC Inox opened a stainless steel pipe factory in Turkey, with production starting in mid-2025. The plant’s capacity will reach 30,000 mt annually, boosting global competitiveness.

Stainless Steel News

  • POSCO has raised 300 series stainless steel prices by 100,000 won (approx. Rs 6,000/- per MT) for January 2025, citing rising production costs despite weak nickel prices. Domestic economic uncertainty and currency fluctuations also played a role. Global prices, including alloy surcharges in Europe and Japan, have also increased.
  • Shanxi Taigang Stainless Steel (TISCO) started upgrading its hot-rolling production line on December 30 to improve product quality. The project aims to meet the demand for thinner, higher-quality stainless and silicon steel.
  • Outokumpu, a Finnish stainless steel producer, raised alloy surcharges for 304, 316L, and 430 grades by EUR 51, EUR 58, and EUR 30 per mt for January 2025.

Banner with newslink.png

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.
  • With Trump’s return and China’s economic challenges, commodity markets may face volatility in 2025. US tariffs and China’s responses, including stimulus policies, will influence commodity prices.
ved bot