Stainless Steel Prices Firm as Nickel Gains, Demand Outlook Steady

Key Takeaways

• Nickel Price Surge: Nickel prices rose for the second day, reaching $15,983/MT, driven by a weaker USD and Indonesian supply disruptions.
• Stainless Steel Rates: 304 CR wider 2B is at Rs 197-199/kg, while SS 316L HR imported material is at Rs 318-322/kg, with Indian material priced higher.
• Demand Trends: The 300 series sees slight improvement, 400 series demand is gradually increasing, and 200 series remains strong due to import shortages.
• Global Trade Impact: US, Canada, and Mexico imposed new tariffs, potentially disrupting stainless steel supply chains and affecting market stability.
• Market Outlook: Stainless steel prices, especially in the 300 and 200 series, are expected to rise due to high USD rates and limited imports.

Stainless Steel Price:

• Nickel opened today up by 0.25% at $15,950/mt, while Copper opened today up by 0.07% at $9,592/mt.
• INR opened today against USD at 86.91/-.
• Current retail price for 304 CR wider 2B is now running approximately at Rs.197-199/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.

Stainless Steel Demand and Supply:

• Demand for the 300 series is showing slight improvement, though not significantly, due to ongoing cash flow challenges.
• The 400 series is also witnessing a gradual rise in demand.
• The 200 series remains strong, driven by a shortage of imported material.
• No.4 PVC material demand continues to rise across both the 200 and 300 series, a trend that has been consistently observed over the past few months.

Stainless Steel News:

• Nickel prices on the LME increased for the second day, closing at $15,983/mt on March 4, up $90. Spot prices also increased, pushing nickel to a six-week high. Prices have climbed 3.56% this month and 4.27% YTD. LME nickel inventories rose to 195,360 mt. Factors include a weaker USD and Indonesian supply disruptions. Despite US tariffs on China, nickel prices continue rising but may fluctuate short-term.
• Swiss Steel Group launched UGIMA-X, the third generation of high-machinability stainless steels. It includes UGIMA-X 4021 and 4028 (martensitic steels) and UGIMA-X 4460 (duplex steel), offering 20% higher productivity, 25-50% longer tool life, and improved chip breakability, setting a new benchmark in machining.

Expert Opinion:

• 300 series prices are expected to rise in the current scenario, since USD is high.
• 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.