Stainless Steel Prices Show Strength as Global Demand Rises

Key Takeaways

• Nickel Prices See Volatility: Rising nickel ore prices from Indonesia and increased demand in China are driving up ferronickel and stainless steel costs.
• Domestic Stainless Steel Prices Hold Firm: The 200 series remains strong due to import shortages, while the 300 and 400 series are showing moderate demand growth.
• Global Trade Policies Impact Market: The EU is cutting steel import quotas, and India’s proposed safeguard duty excludes stainless steel, affecting long-term market strategies.
• Market Caution Despite Price Growth: While stainless steel prices are rising, cautious buying behaviour is slowing bulk purchases.
• Expert Outlook: Prices for the 300 series may rise due to high USD value, the 400 series remains elevated due to BIS issues, and the 200 series is expected to perform well domestically.

Stainless Steel Price:

• Nickel opened today up by 0.22% at $16,250/mt, while Copper opened today up by 0.34% at $9,970/mt.
• INR opened today against USD at 86.30/-.
• Current retail price for 304 CR wider 2B is now running approximately at Rs.197-199/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:

• The cash constraint is causing demand in the 300 series to marginally improve, but not significantly.
• Demand in the 400 series is also seen to be rising. 
• Due to the lack of imported material, demand in the 200 series has climbed even more and is optimistic.
• As anticipated, No. 4 PVC material demand has continued to increase in recent months for both the 200 and 300 series.

Stainless Steel News:

• Nickel ore prices are rising due to Indonesia’s tax policies and heavy rains in Sulawesi, tightening supply and driving up ferronickel prices. Strong demand and bulk purchases in China have pushed stainless steel prices higher, with hot-rolled 304 No.1 up over 4% and cold-rolled 304 2B up nearly 3%. Buyers are cautious, slowing purchases.
• Turkey’s stainless steel imports rose 40% YoY in January, despite higher tariffs and an anti-dumping probe on Chinese and Indonesian cold-rolled steel.
• LME nickel futures rebounded by US$150 to US$16,399/ton on March 19. Prices are up 6.25% in March and 6.9% YTD. Despite a strong US dollar, short-term volatility is expected.
• India’s DGTR proposed a 12% safeguard duty on steel imports for 200 days, excluding stainless steel. Public comments are open for 30 days.
• The EU will cut steel import quotas by 15% in April to prevent redirected exports after the US imposed a 25% steel tariff. More trade measures are planned for 2026.

Expert Opinion:

• 300 series prices are expected to rise in the current scenario, since USD is high.
• 400 series prices are expected to stay high due to the BIS issue.
• 200 series is also anticipated to do very well domestically due to limited imports.