Stainless Steel Market Update: Nickel & Copper Prices Rise; US Fed Cuts Rates

Stainless Steel Price

• Nickel opened today up by 0.59% at $16,295/ton, while copper opened today up by 0.09% at $9,409/ton.
• INR opened today against USD at 83.69/-.
• 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.317-321/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 2 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

• After a two-day Federal Open Market Committee (FOMC) meeting, the US Federal Reserve announced its sixth policy decision for 2024 on September 18. It cut the benchmark interest rate by 50 basis points (bps) or (½) half a percentage point to 4.75%-5.00% for the first time in four years, broadly in line with Wall Street estimates.
• The American Iron and Steel Institute (AISI) and other steel organizations are pushing to pass the America Competes Act. This act will help the United States Department of Commerce (USDOC) implement measures to circumvent trade laws and address unfair trade practices.
• Germany plans to convert a third of its steel industry to green technologies by 2030, targeting 12 million tons of eco-friendly steel each year. This initiative, announced by Economy Minister Robert Habeck, seeks to cut the steel sector's significant greenhouse gas emissions.
• On September 13, 2024, the Office of the United States Trade Representative (USTR) announced an increase in Section 301 tariffs on Chinese imports, after initially proposing the change in May.

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 SS 400 series is continuing with its dull run, due to the lack of demand in ferritic grades.
• The SS 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.