Stainless Steel Prices Hold Firm Amid Cash Crunch and Import Shortages

Key Highlights

• Price Trends: Retail prices for 304 CR wider 2B hover around Rs. 195-198/kg, with 316L HR imported at Rs. 318-322/kg. Nickel and copper are down today.
• Demand Recovery: Demand is increasing for 200 and 400 series; 300 series remains restrained by a cash crunch.
• Supply Shortages: Import shortages in the 200 series and domestic CRGO production gaps strain the market.
• Government Initiatives: Compliance certificates for Chinese steelmakers aim to address critical CRGO shortages in India.

Stainless Steel Prices

• Nickel opened today down by 0.35% at $15,470/mt, while Copper opened today down by 0.04% at $8,986/mt.
• INR opened today against USD at 84.95/-.
• 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.
• 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

• India will issue compliance certificates to three Chinese steelmakers for cold rolled grain oriented steel (CRGO) to address severe domestic shortages. CRGO, critical for transformers, aerospace, and energy industries, faces supply gaps, with India producing only 7% of local demand (300,000 tonnes).
• In October, US scrap exports reached 1.19 million tons, up 3% month-on-month but down 3% year-on-year.
• The European Commission launched a review of EU steel safeguards following requests by 13 member states. The investigation, addressing overcapacity and demand issues, runs until March 2025.

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.