Stainless Steel: Nickel and Copper Down; 200 Series Surges Amid Import Challenges
Stainless steel prices see slight fluctuations, with nickel and copper both down. Demand in the 200 series has surged due to limited imports, while the 300 and 400 series also show some upward movement. Taiwan's stainless steel imports are up, and India's steel capacity utilization is forecasted to drop.
Key Highlights
- Price Fluctuations in Stainless Steel: Nickel and copper prices are slightly down, impacting stainless steel costs; imported SS 304 and 316L are priced higher than domestic materials.
- Demand Trends in Stainless Steel: Demand for 200 series has surged due to import shortages, while the 300 and 400 series also see increased demand despite financial constraints.
- Taiwan’s Stainless Steel Market Impact: Taiwan's imports of 300-series stainless steel rose by 16.37% in November, indicating stronger demand despite lower exports.
- Indian Market Faces Pressure from Imports: India’s steel capacity utilization is expected to fall below 80% in FY2025 due to rising cheap imports and slower domestic production growth.
- SS 200 Series Outlook Positive Domestically: Domestic demand for the 200 series is expected to perform well as imports are restricted, providing an opportunity for local producers.
Stainless Steel Price
- Nickel opened today down by 0.10% at $15,510/mt, while Copper opened today down by 0.04% at $8,986/mt.
- INR opened today against USD at 84.92/-.
- 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 slightly getting better in 300 series, but not that much, due to cash crunch.
- In 400 series also, demand is seen to be increasing. SS 200 series demand has further increased and is upbeat, due to shortage of imported material.
- No.4 PVC material demand is still on the rise as expected, both in 200 and 300 series, as observed in the past few months.
Stainless Steel News
- Taiwan's 300-series stainless steel hot-rolled coil imports rose 16.37% MoM in November to 60,598 mt, the highest since July. Import prices increased for the second consecutive month, nearing NT$60,000. Exports, however, fell by 64.2% to 132 mt, though export prices climbed by over NT$8,200.
- ICRA forecasts India's steel capacity utilization will fall below 80% in FY2025 due to increased cheap imports and slower domestic production. Despite 10-11% demand growth, finished steel production is expected to grow only 5%.
- Nornickel's 2025 budget focuses on cost control, production efficiency, and innovation amidst geopolitical and market challenges. With a RUB 215 billion capital plan, the company prioritizes safety, environmental goals, and infrastructure. Despite a nickel surplus, Nornickel aims to sell its full output.
Expert Opinion
- SS 300 series prices are expected to rise in the current scenario, since USD is high.
- SS 400 series prices are also expected to remain on the steeper side, because of the BIS issue.
- SS 200 series is also expected to perform very well domestically, as imports are choked