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

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 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.

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.