Stainless Steel Market Update: Demand Challenges and Price Fluctuations Continue

Key Insights

• Current Prices: Stainless steel prices remain steady, with 304 CR wider 2B at Rs. 195-198/kg and 316L HR at Rs. 318-322/kg ex-Delhi.
• Demand Trends: Low demand persists in the 300 and 400 series, but the 200 series, especially in thinner sections and No.4 PVC finishes, is showing positive demand due to import restrictions.
• Market Volatility: Nickel prices showed a rebound, closing at $16,064/mt on November 29, marking a 2.2% increase, influenced by expectations of US Fed rate cuts.
• Scrap Market: Indian flat stainless steel producers are facing varying scrap prices, with 304 scrap priced at Rs. 1,27,886/mt and 316L scrap at Rs. 2,25,065/mt.

Stainless Steel Prices

• Nickel opened today down by 0.56% at $15,910/mt, while Copper opened today down by 0.58% at $8,958/mt.
• INR opened today against USD at 84.71/-.
• 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.
• Indian flat stainless steel producers are buying scrap after the service of the finished-goods at the following latest prices (plus GST):- 304: Rs.1,27,886/mt 316L: Rs.2,25,065/mt J5 Patta: Rs.72,000/mt J8 Patta: Rs.70,000/mt 430: Rs.56,317/mt

Stainless Steel Demand and Supply

• Demand is still low in the 300 series due to cash crunch.
• In 400 series also, demand is not upto 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

• Italy’s Arvedi AST suspended production at its Terni plant from November 20-30, 2024, to stabilize the stainless steel market amidst low demand and falling prices.
• Outokumpu, in partnership with Schmidt Edelstahl and Meiller Aufzugtüren, introduced Outokumpu Circle Green, a sustainable stainless steel for elevator doors.
• LME nickel futures rebounded on November 29, 2024, closing at US$16,064/mt, rising by US$181. Nickel prices have increased by 2.2% this month, driven by the US Federal Reserve’s expected rate cuts and a halt in the decline of China’s stainless steel futures.
• In October 2024, Taiwan’s stainless steel scrap imports fell by 10.2%, while exports dropped nearly 50%. Prices, however, rebounded, with import prices reaching NT$42,000/mt and export prices rising to NT$49,700/mt.

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 be continuing in the dull category, due to lack of demand.
• The 200 series is expected to be performing satisfactorily, in all grades and finishes, especially in thinner sections and No.4 PVC/Matte Finishes.