Stainless Steel Prices Hold Steady as Global Production Faces Imbalances

Nickel prices opened unchanged while copper saw a slight rise today. The stainless steel market is experiencing moderate demand for 304 and 316L in generic sizes, while ferritic grades see limited interest. Global markets continue to face imbalances, with China’s production outpacing demand, and Europe turning to nickel pig iron to mitigate raw material shortages.

Key Highlights

  • Stable Prices for Key Metals: Nickel remained steady, and copper saw a slight increase in early trading today.
  • Rising Demand for 304 & 316L Stainless Steel: Demand for stainless steel grades 304 and 316L has improved in India, with prices slightly rising.
  • Global Supply-Demand Imbalance: China’s stainless steel production outpaces demand, contributing to a global oversupply issue.
  • Surge in Scrap Prices: European stainless steel scrap prices rose sharply due to export interest but are expected to stabilize soon.

Stainless Steel Prices Today

  • Nickel opened today unchanged at $16,255/ton, while Copper opened today up by 0.57% at $9,576/ton.
  • INR opened today against USD at 84.08/-.
  • 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.

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Stainless Steel Demand and Supply Dynamics

  • Demand is slightly better in 304 & 316L (CR & HR), in generic sizes, as compared to previous 3 months.
  • Not much demand is there in ferritic grades, except some railway fabrication usage in 409M/X2CrNi12/IRSM 44-97 grades.
  • Good demand is being observed in No.4/Matte PVCfinish in 201 grades, due to short supply from domestic players, and non-renewal of BIS for imported material.
  • Decent demand is also being observed in 304 narrow sizes, for applications like pipes and tubes or rerolling usages, due to short supply in imported material.

Stainless Steel News

  • China's stainless steel market has faced "strong supply, weak demand" since 2023. Production is expected to grow by 3.2-5%, reaching up to 38.5 million tons in 2024. However, consumption is rising at a much slower rate, with a 1.73% increase compared to the 3.45% production growth.
  • Asian and European producers are shifting towards nickel pig iron and imported slabs to cut costs amid scrap scarcity. In Europe, stainless steel scrap prices recently rose by 4.72% but are expected to decline soon.
  • ABB has partnered with ArcelorMittal to use low-carbon steel, reducing the carbon footprint of ABB’s power systems by 29%. ABB plans to apply its Circularity Approach to 80% of its products by 2030.

Explore more industry updates and stainless steel news here!

Expert Opinion

  • Both 304 & 316L are expected to have a medium to good run in this week, owing to the slight raw material price increase.
  • The 400 series is continuing with its dull run, due to the lack of demand in ferritic grades.
  • The 200 series is still performing strongly, in special finishes like N4P (Matte PVC) & N8P (Mirror PVC) owing to the lack of imported products in the market.