Stainless Steel Prices Hold Steady Amid Dull Demand in Key Grades

Key Highlights

• Stable Prices and Mixed Demand: Prices are steady, with the 300 series seeing low demand due to cash flow issues, while the 200 series is performing steadily, especially in speciality finishes due to import shortages.
• Global Developments: Acquisitions, lifting of anti-dumping duties, and nickel price increases due to China’s recovery may impact regional exports and high-end stainless steel demand.
• Festive Impact: Demand is expected to dip due to upcoming holidays and limited funds, especially for the 300 and 400 series.
• Speciality Finishes in Demand: Growing interest in speciality PVC finishes is filling gaps in domestic supply.
• Cautious Outlook: Experts expect demand for the SS 200 series to hold, while SS 300 and SS 400 series remain sluggish in Indian markets.

Stainless Steel Price Update

• Nickel opened today unchanged at $16,145/mt, while Copper opened today up by 0.51% at $9,746/mt.
• INR opened today against USD at 84.13/-.
• Current retail price for 304 CR wider 2B is now running approximately at Rs.198-201/kg basic price range, ex-Delhi, while for narrow, it is approximately Rs.3-5/kg cheaper, plus GST.
• SS 316L imported material is now being retailed in the price range of Rs.320-324/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.143-148/kg, ex-Delhi, plus GST.
• Domestic 201 (cheapest grade) is now being retailed in the price range of Rs.140-143/- base price (plus thickness difference extra), plus GST.

Stainless Steel Demand and Supply Trends

• Demand has gone down at present in 300 series, due to lack of funds, in the market.
• Even in ferritic grades, demand is not that great.
• 200 series demand is still there, due to lack of imported material.
• No.4 PVC material demand is on the rise, both in 200 and 300 series, due to lack of production of this finish from the domestic suppliers & scarce availability of stock.

Global Stainless Steel News

• Walsin Lihwa's Italian subsidiary, Cogne Acciai Speciali, acquired Mannesmann Stainless Tubes (MST) for EUR 116 million, expanding Walsin's market in high-end stainless steel and nickel alloys. MST will be renamed "DMV" to strengthen brand integration.
• Vietnam recently lifted its anti-dumping duties on cold-rolled stainless steel from China, Taiwan, Malaysia, and Indonesia, a move expected to boost Taiwan's short-term exports.
• The London Metal Exchange (LME) nickel prices rose to US$15,944/ton due to recovery signals in China's manufacturing and real estate sectors.
• Universal Stainless & Alloy Products, Inc. in the US reported a net income of US$11 million in Q3, up 479% year-on-year, with aerospace sales at record highs.
• Taiwan's Feng Hsin Steel Co. maintained its scrap and rebar prices. Market watchers are eyeing the effects of China’s new economic stimulus plan on the steel market.
• Indonesia’s nickel reserves may run out within five years, with nickel prices rising in Asia.

Expert Opinion

• SS 300 series is expected to have a dull run in the present and upcoming week, because of payment shortage and upcoming festive holidays.
• SS 400 series performance is also expected to be dull, except 410S grade, where there will be considerable demand in thinner gauges.
• The SS 200 series is expected to be performing satisfactorily, in special finishes like N4P (Matte PVC) & N8P (Mirror PVC) owing to the lack of imported products in the market.