Stainless Steel Prices Hold Steady; Nickel and Copper Prices Unchanged

Key Takeaways

• Demand Shifts: Slight recovery in demand for 304 and 316L grades, especially in rerolling and piping sectors.
• Supply Constraints: Restricted imports and tighter quality controls for 201 grades are pushing up prices.
• Government Regulations: Tightening of quality regulations expected to curb the entry of substandard steel into India.

Stainless Steel Prices

• Nickel and Copper Prices: Nickel opened today unchanged at $17,670/ton, while Copper opened today unchanged at $9,659/ton.
• INR to USD Rate: INR opened today against USD at 84.06/-.

Stainless Steel Prices:

• 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

• 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

• Indonesia’s state-owned mining company PT Aneka Tambang (Antam) acquired 30% shares in the smelter PT Jiu Long Metal Industry through its subsidiary PT Gag Nikel. This move is in line with the Indonesian government’s policy of increasing the added value of domestic minerals.
• The US International Trade Commission (USITC) announced that it made the affirmative determination to keep the existing anti-dumping (AD) orders on imports of silicomanganese from China and Ukraine after the fifth sunset review of AD on these imported products.
• The Indian government is planning to adjust its quality control orders after an analysis by the Ministry of Steel at the beginning of October revealed an increase in substandard steel imports.
• Nickel futures on the SHFE increased by up to 0.7% on Monday. Chinese nickel pig iron (NPI) prices also improved by up to 0.35%. Stainless steel prices (304/316L) also continued to rise in response to higher raw material costs.

Key Implications

• Increased Import Scrutiny: Stricter quality controls in India will likely result in delays for imported stainless steel materials, raising compliance and quality concerns for traders.
• Price Impact: Rising nickel futures and Chinese NPI prices are contributing to the ongoing increase in stainless steel prices, particularly in the 304 and 316L grades.

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.