Stainless Steel Prices Set to Rise Amid Improved Demand; India Considers Customs Duty Hike

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.