Stainless Steel Market Stays Firm, Nickel, Copper Prices Fluctuate Amid Global Economic Developments

Industry Takeaways:

• Nickel and Steel Prices Fluctuate: LME nickel closed at $15,468/mt, while US plans a 25% tariff on steel and aluminum imports, impacting industries like automobiles and construction.
• China’s Economy and Global Trade Risks: China’s real estate slump pressures its economy, but stimulus efforts may help. Meanwhile, geopolitical tensions ease, with potential Russia-Ukraine resolution and Middle East ceasefire.
• Steel Industry Faces Supply Challenges: ArcelorMittal may shift support operations to India, while a US-based stainless steel mill halts expansion due to slab shortages and Section 232 tariff adjustments.

Stainless Steel Price:

• Nickel opened today down by 0.16% at $15,430/mt, while Copper opened today up by 0.20% at $9,496/mt.
• INR opened today against USD at 86.75/-.
• The current retail price for 304 CR wider 2B is approximately Rs.197-199/kg (basic price), ex-Delhi. Narrow widths are Rs.3-5/kg cheaper, plus GST.
• SS 316L HR imported material is now priced at Rs.318-322/kg for HR wider, while Indian material costs Rs.5-10/kg more. For CR wider, the rates are Rs.10/kg higher than HR. SS 201 imported CR 2B (extra low thicknesses like 0.26mm) is retailing at Rs.165-167/kg, ex-Delhi, plus GST.
• Domestic 201 (cheapest grade) is priced at Rs.143-145/kg (base price, plus thickness difference extra), plus GST.

Stainless Steel Demand and Supply:

• Demand in the 300 series is improving slightly but remains subdued due to a cash crunch.
• The 400 series demand is increasing.
• 200 series demand has surged, driven by a shortage of imported material.
• No.4 PVC material demand continues to rise for both 200 and 300 series, as observed in recent months.

Stainless Steel News:

• LME nickel futures on February 14 increased by $94, closing at $15,468/mt, while the spot price rose by $96 to $15,259/mt. LME inventories grew significantly by 2,592 tons, totaling 183,852 tons. Since the month began, inventories have risen by 11,550 tons (5.7%).
• China’s struggling real estate sector is weighing on its economy, but upcoming stimulus efforts may yield positive results. The Two Sessions meeting in March could introduce further economic measures. Geopolitical tensions are easing, with the Russia-Ukraine war showing signs of resolution and the Israel-Hamas conflict reaching a ceasefire in January.
• The EU steel industry faces challenges from high costs and rising imports, leading ArcelorMittal to consider relocating support activities to India. The company confirmed European production will remain but aims to centralize non-production operations for cost efficiency. Decarbonization investments in Europe remain under review.
• According to Descartes, US container imports hit a record 2.49 million TEUs in January 2025, up 5% month-on-month. Concerns over Trump Tariff 2.0 led to increased imports. Geopolitical instability in the Middle East continues to pose supply chain risks.
• Brazilian Steel Institute President Marco Polo Lopes dismissed a retaliatory stance against US tariffs, advocating direct negotiations. He emphasized that reestablishing a quota agreement is crucial for both Brazilian and American steel industries, noting Brazil's previous 3.5 million-ton annual quota with the US.
• A European stainless steel mill in the US has suspended its cold rolling expansion due to shortages of slab and hot-rolled strip from Mexico and Northern Europe. The Section 232 adjustment has disrupted supply, impacting stainless steel production and availability in the US.

Expert Opinion:

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