Stainless Steel Prices Firm as Import Constraints Drive Demand

Key Takeaways

• Stainless Steel Prices: 304 CR wider 2B is priced at Rs.199-200/kg (ex-Delhi), while 316L HR imported is at Rs.320-323/kg; ex-Delhi. 
• Scrap Prices: Indian producers are buying 304 scrap at Rs.1,27,886/MT, while 316L scrap is at Rs.2,25,065/MT. 
• Market Demand: The 300 series is seeing a marginal demand boost due to cash constraints, while the 200 series remains strong due to import shortages.
• Global Developments: China is expanding carbon emissions trading to steel, while US tariffs on copper may tighten supply and impact stainless steel costs.
• Expert Outlook: The 300 series is expected to see price increases due to USD strength, 400 series prices will remain high due to BIS constraints, and the 200 series is likely to perform well due to limited imports.

Stainless Steel Price:

• Nickel opened today unchanged at $16,400/mt, while Copper opened today down by 0.11% at $9,874/mt.
• INR opened today against USD at 85.56/-.
• Current retail price for 304 CR wider 2B is now running approximately at Rs.199-200/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.320-323/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:

• The cash constraint is causing demand in the 300 series to marginally improve, but not significantly.
• Demand in the 400 series is also seen to be rising. 
• Due to the lack of imported material, demand in the 200 series has climbed even more and is optimistic.
• As anticipated, No. 4 PVC material demand has continued to increase in recent months for both the 200 and 300 series.

Stainless Steel News:

• China’s Yongjin Technology, along with partners, is investing CNY 1.868B in a stainless steel plant in Turkey, aiming for 400,000 mt annual output within 24 months.
• Nickel ore prices remain strong, but weak stainless steel demand in China is making mills cautious. Futures declines have led to low inventories.
• China is expanding its carbon emissions trading to include steel, cement, and aluminum, adding 1,500 key emitters and covering over 60% of national CO2 emissions.
• Trafigura scrapped its A$750M green hydrogen project in Australia due to high costs and weak demand, raising concerns about the sector’s commercial viability.
• Nippon Steel cut emissions by 43% with green hydrogen, while Baowu Steel and POSCO push hydrogen-based steelmaking. Japan lags in commercialization.
• US tariffs on copper could drive imports up 50%-100%, tightening supply and raising costs for stainless steel and water hardware.
• Electrolux aims for 35% recycled steel and plastic in products by 2030, nearly doubling previous targets and covering 40% of its raw material use.

Expert Opinion:

• In the current situation, 300 series prices are anticipated to increase due to the high USD.
• 400 series prices are expected to stay high due to the BIS issue.
• 200 series is also anticipated to do very well domestically due to limited imports.