Stainless Steel Prices Set to Rise Amid Improved Demand; India Considers Customs Duty Hike
Stainless steel prices have been rising as demand picks up in the 200, 300, and 400 series. Imported material shortages, especially in the 200 series, are driving higher retail prices. Meanwhile, China's stainless steel imports fell sharply in November, while exports surged. Expert opinion suggests that higher USD and tightening imports will continue to influence price trends.
Key Takeaways
- Price Trends: Prices for stainless steel, particularly in the 304 CR and SS 316L HR grades, are on the rise due to demand and material shortages.
- Demand Increase: Demand for 200, 300, and 400 series stainless steel is growing, especially as imported material supply tightens.
- China's Trade: China's stainless steel imports fell by 17.9%, while exports to Europe and Brazil saw increases.
- India's Policy Changes: The Indian Finance Ministry rejected bulk procurement of green steel, but the Steel Ministry pushes for a Green Public Procurement policy.
- Expert Opinion: Prices for 300, 400, and 200 series stainless steel are expected to increase, driven by a strong USD and tighter import conditions.
Stainless Steel Price:
- Nickel opened today up by 0.95% at $15,450/mt, while Copper opened today down by 0.60% at $8,928/mt.
- INR opened today against USD at 85.48/-.
- Current retail price for 304 CR wider 2B is now running approximately at Rs.195-198/kg basic price range, ex-Delhi, while for narrow, it is approximately 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 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. 165-167/kg, ex-Delhi, plus GST. Domestic 201 (cheapest grade) is now being retailed in the price range of Rs.143-145/- base price (plus thickness difference extra), plus GST.
Stainless Steel Demand and Supply:
- Demand is slightly getting better in 300 series, but not that much, due to cash crunch.
- In 400 series also, demand is seen to be increasing.
- 200 series demand has further increased and is upbeat, due to shortage of imported material.
- No.4 PVC material demand is still on the rise as expected, both in 200 and 300 series, as observed in the past few months.
Stainless Steel News:
- In November, China’s stainless steel imports dropped by 17.9%, while exports rose by 2.7% month-on-month. Exports to Europe and Brazil saw significant increases, while exports to India hit a three-year low due to anti-dumping policies.
- India's Finance Ministry rejected the proposal for a central agency to bulk procure green steel, but the Steel Ministry aims to push for a Green Public Procurement (GPP) policy to boost demand.
- India’s Ministry of Steel is also proposing to increase customs duties on finished steel imports to 15% from 7.5% and impose a 25% safeguard duty on Chinese steel imports to protect the domestic industry.
- China’s stainless steel scrap imports fell sharply by 71% year-on-year in November, driven by a decline in imports from Japan and a shift to nickel pig iron for steel production. Meanwhile, China’s nickel pig iron imports rose by 28% from the previous month.
- Feng Hsin Steel in Taiwan kept its purchasing price for scrap steady, reflecting market expectations for stable rebar prices, with no major changes until after the New Year.
Expert Opinion:
- 300 series prices are expected to rise in the current scenario, since USD is high.
- 400 series prices are also expected to remain on the steeper side, because of the BIS issue.
- 200 series is also expected to perform very well domestically, as imports are choked.