Stainless Steel Market Update: Nickel Prices Down, Copper Up

Key Takeaways

• 304 & 316L grades are poised for steady performance, but ferritic grades face challenges.
• Global nickel market remains oversupplied, which could further pressure nickel prices.
• Import restrictions and short supply are driving up prices for special finishes, particularly in the 200 series.

Stainless Steel Prices

• Nickel opened today down by 0.91% at $16,920/ton, while Copper opened today up by 0.35% at $9,549/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

• 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

• Aperam, a Luxembourg headquartered stainless steel manufacturer, has signed a definitive agreement to acquire Universal Stainless & Alloy Products, Inc. (Universal), a leading US producer of specialty steel products for aerospace and industrial applications, for $45.00 per share in an all-cash transaction.
• World Bureau of Metal Statistics (WBMS) latest report showed that the global refined nickel production was 279,400 tons in August, and consumption was 274,800 tons, so there was an oversupply of 4,600 tons.
• The copper outlook indicates a forecast of reduced growth in mine supply alongside an increase in prices in the coming years.

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.