Stainless Steel Market Update: 200 Series Demand Rises Amid Import Shortages

Key Highlights

• Price Update: 304 CR wider 2B priced at Rs. 195-198/kg, SS 316L HR at Rs. 318-322/kg (Indian material costs Rs. 5-10 more).
• Mixed Demand: Low demand in 300 and 400 series due to cash flow issues; 200 series sees increased demand driven by limited imports.
• Global Policy Impact: Armenia extends scrap metal export ban; potential U.S. tariffs could affect stainless imports; China boosts stainless steel production with low-emission electric arc furnaces.
• Demand Forecast: Continued demand strength in the 200 series in India with focus on No.4 PVC finishes; slow performance anticipated for 300 and certain ferritic grades.

Stainless Steel Prices

• Nickel opened today up by 0.44% at $15,805/mt, while Copper opened today down by 0.97% at $8,960/mt.
• INR opened today against USD at 84.41/-.
• 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.
• Domestic 201 (cheapest grade) is now being retailed in the price range of Rs.143-145/- base price (plus thickness difference extra), plus GST.

Stainless Steel Demand and Supply

• Demand is still low in 300 series, due to cash crunch.
• In SS 400 series also, demand is not up to the mark.
• SS 200 series demand has rather increased and is upbeat, due to lack of imported material.
• No.4 PVC material demand is still on the rise, both in 200 and 300 series, as observed in the past few months.

Stainless Steel News

• Armenia has extended its ban on exporting ferrous and non-ferrous scrap metal until July 31, 2025. This measure aims to support the local metallurgical industry by retaining raw materials, promoting production, and boosting manufacturing.
• In the U.S., the potential return of former President Trump could lead to expanded tariffs on imports, which would impact Taiwanese exporters like Yieh Phui and SYSCO, whose products already face a 25% tariff.
• In Europe, stringent protectionist policies have caused challenges for the stainless steel downstream industry, with the EU relying on imports for at least 25% of its demand due to limited local capacity.
• China is advancing its stainless steel production with 18 new electric arc furnaces aimed at reducing emissions.

Expert Opinion

• SS 300 series is expected to continue its dull run, in the recent scenario.
• SS 430 and 410S performance is being marked as average, while 409M & 409L, in ferritic grades, are expected to continue in the dull category, due to a lack of demand.
• The SS 200 series is expected to perform satisfactorily, in all grades and finishes, especially in thinner sections and No.4 PVC/Matte finishes.