Stainless Steel Market Update: Nickel and Copper Increase Amid Global Supply Chain Shifts

Daily Market Report2 Min Read21 Oct 2024

Stainless steel prices remain dynamic, with marginal fluctuations in key raw materials like nickel and copper. The demand for 304 and 316L grades is picking up slightly, while certain ferritic and specialized finishes in 200 series are seeing stronger demand. Global supply chain challenges and shifts in scrap steel usage across Europe and Asia also persist.

Key Takeaways

Prices Update: Stainless steel prices for 304 CR wider 2B are running at Rs.198-201/kg, while SS 316L is being retailed between Rs.320-324/kg.
Demand Growth: Demand is improving for generic sizes in 304 and 316L, with short supply pushing demand for specialized 201 finishes.
Shift from Scrap to Semi-Finished Products: Stainless steel scrap prices in Europe and Asia are pushing steel mills to adopt billets and nickel pig iron as alternatives.

Stainless Steel Prices Today

Nickel opened today up by 0.03% at $17,005/ton, while Copper opened today up by 1.16% at $9,737/ton.
INR opened today against USD at 84.07/-.
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 Trends

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 Global News

In parts of Europe and Asia, stainless steel mills are increasingly turning to billets and nickel pig iron as alternatives to high-priced scrap.
Ukraine's iron and steel industry faces significant challenges from the EU’s Carbon Border Adjustment Mechanism (CBAM), as 93% of its exports to the EU are in sectors impacted by these regulations.
The European Central Bank (ECB) has cut interest rates for the third time this year, reducing the deposit rate to 3.25% amid slowing economic growth, particularly in Germany.
Vietnam's scrap steel imports grew by 19% in August 2024, with Japan being the top supplier.
Tesla has announced a shift to a new battery composition, increasing nickel content to 90% while reducing cobalt to just 5%. This NMC 955 composition is expected to boost energy density, although balancing safety remains a challenge.

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.