Stainless Steel Prices Hold Firm as Demand Across Grades Stays Strong

Key Takeaways

• Stable Domestic Prices: Stainless steel prices remain steady, with minor fluctuations across different series and grades.
• 200 Series Demand Surge: Strong domestic demand continues due to limited imports, supporting higher prices.
• Global Production Shifts: China’s stainless steel output fell in January but is set to recover in February, impacting supply trends.
• Trade and Policy Uncertainty: US tariffs, EU retaliation, and weak construction demand continue to shape global stainless steel trade.
• Market Outlook: Experts anticipate stable to rising prices for major series due to currency fluctuations and regulatory challenges.

Stainless Steel Price:

• Nickel opened today down by 0.16% at $15,400/mt, while Copper opened today up by 0.26% at $9,480/mt.
• INR opened today against USD at 86.83/-.
• 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:

• China’s stainless steel output dropped 16.87% in January to 2.86 million mt, mainly due to a 21.43% drop in the 200 series. However, February production is set to rise 9.94% to 3.15 million mt.
• Nickel prices on LME increased by $16 to $15,538 per mt as ferronickel prices increased due to mining disruptions, but oversupply may cause short-term fluctuations.
• The global steel market faces pressure from rising Chinese exports and uncertainty over US trade policies. The US construction sector is stalled, and EU steel mills struggle with low demand and high costs, forcing shutdowns.
• The EU may retaliate against new US tariffs on steel, while India’s stainless steel industry fears export losses, according to ISSDA President Rajamani Krishnamurti.
• Despite market challenges, the global stainless steel industry is expected to grow from $142.79 billion in 2024 to $194.77 billion by 2031 at a CAGR of 4.6%, driven by rising demand, innovation, and sustainability.

Expert Opinion:

• In terms of pricing, the 300 series is likely to see an upward trend due to the high USD exchange rate.
• Prices for the 400 series are also expected to stay elevated, influenced by the BIS issue.
• The 200 series is performing well in the domestic market as limited imports continue to support strong demand.