Stainless Steel Prices Mixed; 200 Series Demand Strengthens

Key Highlights

• Price: LME's Nickel fell 0.70% to $15,590/mt, while Copper dropped 0.25% to $9,540/mt, impacting stainless steel prices.
• Demand and Supply: 300 series demand is improving but faces liquidity issues. The 400 series sees steady growth, while the 200 series strengthens due to limited imports. No.4 PVC stainless steel demand continues to rise in the 200 and 300 series.
• Market Outlook: 300 series prices may rise with a strong USD, while the 400 series remains stable due to BIS certification issues. The 200 series is expected to perform well amid tight supply.

Stainless Steel Price

• Nickel opened today down by 0.70% at $15,590/mt, while Copper opened today down by 0.25% at $9,540/mt.
• INR opened today against USD at 86.55/-.
• The current retail price for 304 CR wider 2B is approximately Rs.197-199/kg (basic price), ex-Delhi. For narrow variants, it is 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 Rs.5-10/kg more expensive. 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 range of Rs.143-145/kg (base price, plus thickness difference extra), plus GST.

Stainless Steel Demand and Supply

• Demand in the 300 series is slightly improving but remains limited due to a cash crunch.
• 400 series demand is also increasing.
• 200 series demand has further strengthened due to a shortage of imported material.
• No.4 PVC material demand continues to rise in both 200 and 300 series, following trends from the past few months.

News

• Aperam’s Stainless Steel Growth: In 2024, Luxembourg-based Aperam increased its stainless and electrical steel supply by 4.9% YoY to 1.626 million mt. A low 2023 base, due to stock sell-offs, enabled this rise. Q4 2024 shipments grew 2.6% QoQ to 401 thousand mt, though down 1.5% YoY.
• European & Brazilian Demand Trends: European demand showed slight improvement, while Brazilian demand exceeded expectations. The Services & Solutions segment saw a 9% YoY rise to 169 thousand mt. However, shipments in alloys & specialty products remained stable at 10 thousand mt.
• Synergy Steels on Infrastructure Push: Synergy Steels welcomed the Rs.50,000 Cr port modernization initiative and the Rs.10.7 Lakh Cr infrastructure investment announced in India's Union Budget 2025-26, stating these measures will strengthen the industry.
• China’s Nickel Refining Dominance: Over 75% of Indonesia’s nickel refining capacity is controlled by Chinese firms, many linked to the Chinese government, according to U.S.-funded think tank C4ADS. A review of 33 Indonesian nickel firms found that Chinese defense-linked entities own key refining operations.
• Key Chinese Players in Nickel: Tsingshan Holding Group and Jiangsu Delong Nickel Industry dominate over 70% of Indonesia’s refining capacity. Tsingshan has shares in five major smelters, while Jiangsu Delong owns stakes in PT Virtue Dragon, PT Obsidian Stainless, and PT Gunbuster, controlling 38% of refining capacity in 2023.
• China’s Copper Imports Surge: Chinese imports of refined copper from the Democratic Republic of Congo soared 71% YoY to 1.48 million mt in 2024. Congo has become China’s largest supplier, reflecting the growing influence of Chinese miners in the region and shifting global market dynamics.
• Anglo American Sells Nickel Business: Anglo American sold its nickel assets in Brazil to MMG Singapore Resources for up to $500 million. This move aligns with Anglo’s restructuring efforts following its rejection of BHP’s £39 billion takeover bid in 2023.
• Anglo’s Strategic Focus Shift: The company aims to focus on copper and iron, while divesting its platinum and diamond units. Anglo American Platinum will be listed in London after June, while continuing to trade on the Johannesburg Stock Exchange. Anglo’s stock rose 0.4% in early London trading.

Expert Opinion

• 300 series prices are expected to rise as the USD remains high.
• 400 series prices are likely to stay firm due to the BIS issue.
• 200 series is expected to perform well domestically as imports remain restricted.