Stainless Steel Market Update: Demand Fluctuations and Supply Challenges Persist

Key Takeaways

• Price Increases: Prices for 304 and 316L stainless steel are seeing upward pressure, driven by higher raw material costs and short supply.
• Global Economic Impact: Economic policies in the US and China are indirectly influencing the steel market, pushing prices higher.
• Demand Fluctuations: Demand is showing signs of improvement for some stainless steel grades, while others, like ferritic grades, remain sluggish.

Stainless Steel Prices

• Nickel opened today down by 0.88% at $16,350/ton, while Copper opened today up by 0.05% at $9,588/ton.
• INR opened today against USD at 84.08/-.
• Current retail price for 304 CR wider 2B is now running approximately at Rs.198-201/kg basic price range, ex-Delhi, while for narrow, it is approximately Rs.3-5/kg cheaper, plus GST.
• SS 316L imported material is now being retailed in the price range of Rs.320-324/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. 143-148/kg, ex-Delhi, plus GST.
• Domestic 201 (cheapest grade) is now being retailed in the price range of Rs.140-143/- base price (plus thickness difference extra), plus GST.

Stainless Steel Demand and Supply

• Demand is slightly better in 304 & 316L (CR & HR), in generic sizes, as compared to previous 3 months.
• Not much demand is there in ferritic grades, except some railway fabrication usage in 409M/X2CrNi12/IRSM 44-97 grades.
• Good demand is being observed in No.4/Matte PVCfinish in 201 grades, due to short supply from domestic players, and non-renewal of BIS for imported material.
• Decent demand is also being observed in 304 narrow sizes, for applications like pipes and tubes or rerolling usages, due to short supply in imported material.

Stainless Steel News

• The global steel market is improving due to factors like US interest rate cuts and China’s reserve requirement reduction. Prices for both carbon and stainless steel are rising, driven by increasing raw material costs, particularly nickel.
• Mining associations are working on unified ESG standards, with 100 companies involved in a consultation. This initiative will promote responsible mining and metal sourcing practices, aligned with the UN's Sustainable Development Goals.
• European steel leaders are urging the EU to act on their crisis by addressing overcapacity, energy costs, and unfair trade practices. They are also pushing for improvements to the Carbon Border Adjustment Mechanism (CBAM) and more support for green steel.

Explore more industry updates and stainless steel news here!

Expert Opinion

• Both 304 & 316L are expected to have a medium to good run in this week, owing to the slight raw material price increase.
• The 400 series is continuing with its dull run, due to the lack of demand in ferritic grades.
• The 200 series is still performing strongly, in special finishes like N4P (Matte PVC) & N8P (Mirror PVC) owing to the lack of imported products in the market.