Stainless Steel Prices: Nickel and Copper Down; Demand Up for 304 & 316L

Stainless Steel Prices

• Nickel opened today down by 0.81% at $15,990/ton, while Copper opened today down by 0.07% at $9,086/ton.
• INR opened today against USD at 83.93/-.
• 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.317-321/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 0.26 mm) 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 the previous 2 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

• Hydnum Steel, Spain's first green steel plant, signed a Memorandum of Understanding (MoU) with Euroports, a leading European port and logistics operator, to enhance the steel supply chain across Europe. The collaboration aims to design and implement a sustainable logistics network to improve the transportation, storage, and distribution of steel coils produced at Hydnum Steel's Puertollano plant. The agreement will also focus on efficient logistics for key steelmaking materials such as ferrous scrap and iron ore. Euroports' expertise in port infrastructure management will be essential to achieving these goals and ensuring reliable and cost-effective transport solutions.
• Germany's manufacturing sector continued to weaken in August, with new orders declining significantly, reflecting reduced demand and underutilized production capacity, according to a recent survey. Germany's August Purchasing Managers' Index (PMI) fell to 42.4, further below the 50-point threshold signaling contraction. Additionally, German Volkswagen hinted at possible plant closures due to rising competition from cheaper Chinese electric vehicles.
• The Caixin Purchasing Manager Index, which is important for the manufacturing sector in China, climbed back above the 50-point mark in August. With an increase to 50.4 (July 49.8) points, this indicates an improvement in conditions in the manufacturing sector. Manufacturing output rose for the tenth consecutive month in August, led by companies in the consumer goods and intermediate goods sectors. The growth rate improved in particular due to an increase in incoming orders among the Chinese companies surveyed. Survey respondents also indicated that improved demand conditions and promotional activities supported the recent increase in new orders.
• Outokumpu, the pioneer in sustainable stainless steel, entered the metal powder market for additive manufacturing nearly a year ago by piloting to produce metal powder at its production site in Krefeld, Germany in April 2023. Outokumpu’s target is to further strengthen the company’s ambitious innovation strategy and circular economy efforts by producing annually up to 330 tons of metal powder from the company’s own recycled material, 100% stainless steel scrap. Upon completion of the first trial-year, the company is now entering into the commercial production phase. Outokumpu has been entering a collaboration with steel trading company STAHL KREBS. Another collaboration in the pipeline is within the medical and jewellery industry to work on nickel-free materials, which can be used for implants, medical tools and watches. The collaboration is taking place via a public funded project by EIT Raw Materials, HiPAM, led by VTT Technical Research Centre of Finland.
• Copper prices fell by 0.25%, settling at 783.4, pressured by a firm dollar and concerns over demand following weak manufacturing data from China, the largest consumer of copper. China's manufacturing data sank to a six-month low, signalling struggling demand, particularly in the housing sector, which has faced a sharp contraction in completions this year. Additionally, copper inventories in LME-registered warehouses surged by 8,700 tons, reaching 322,950 tons, the highest in five years and double the levels seen in mid-June, mainly due to heavy exports from China. BHP Group, a major copper producer, downgraded its forecast for China’s copper growth to 1-2% for 2024, while also predicting a modest global surplus through 2025.

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.