Stainless Steel Prices Stable; Demand Trends Vary Across Series

Key Highlights

• Price Trends: LME's Nickel futures unchanged at $15,465/ton, Copper up 0.18%, 304 CR wide 2B priced ₹195-198/kg, ex-Delhi, plus GST.
• Demand Outlook: SS 200 series demand surges due to limited imports; 300 and 400 series show slight improvement despite cash constraints.
• Market News: Indonesia limits nickel ore production; China’s stainless steel exports up 22.96% YoY; Taiwan faces export competitiveness challenges.

Stainless Steel Price

• Nickel opened today unchanged at $15,465/ton, while Copper opened today up by 0.18%, at $8,967/ton.
• INR opened today against USD at ₹85.27/-.
• The current retail price for 304 CR wider 2B is approximately ₹195-198/kg basic price range, ex-Delhi. For narrow material, it is approximately ₹3-5/kg cheaper, plus GST.
• SS 316L HR imported material is now being retailed in the price range of ₹318-322/kg for HR wider. Indian material is more expensive by ₹5-10/kg. For CR wider, the rates are ₹10/kg higher than HR.
• SS 201 imported CR 2B (extra low thicknesses like 0.26mm) is being retailed at ₹165-167/kg, ex-Delhi, plus GST.

Stainless Steel Demand and Supply

• Demand is slightly improving in the 300 series, though not significantly, due to a cash crunch.
• In the 400 series, demand is also seen to be increasing.
• Demand for the 200 series has further increased and remains upbeat due to a shortage of imported material.
• Demand for No.4 PVC material continues to rise in both the 200 and 300 series, consistent with trends observed over the past few months.

News

• High-Aluminum Lightweight Stainless Steel Breakthrough: The Stainless Steel Research Institute of Hongxing Co. has successfully developed high-aluminum lightweight stainless steel. This material reduces specific gravity and enhances performance by adding aluminum. Widely applicable in automobiles, aerospace, and trains, it offers superior density reduction compared to stainless steel 304 and 430, achieving significant lightweight goals.
• Indonesia to Limit Nickel Ore Production: Indonesia, the top nickel producer, plans to curb nickel ore production to stabilize global prices amid oversupply. With over half of the world's nickel reserves, the country aims to protect its economy while expanding its downstream sector. Investments in processing add value and create jobs, maintaining Indonesia's market influence.
• China's Stainless Steel Trade in November 2024: China imported 130,000 tons of stainless steel in November, down 1.82% year-on-year. Imports from Indonesia dropped 19.86% monthly but rose 0.57% yearly. Exports increased 22.96% to 439,000 tons compared to 2023. Net exports surged by 37.62%, reaching 309,000 tons, reflecting strong growth in the January-November period.
• Taiwan Steel Industry Faces Export Challenges: Taiwan's slower currency depreciation compared to Asian peers limits export competitiveness. The strong U.S. dollar has triggered regional devaluations, benefiting rivals. Amid fierce competition in key markets, Taiwanese steelmakers are struggling to secure year-end orders. Missing Q1 export targets could impact the market in Q2 2024, warn insiders.
• Shanghai Nickel Prices Rise Amid Supply Concerns: Nickel prices on the Shanghai Futures Exchange climbed for a fourth day, closing at CNY 125,330/ton. Seasonal slowdowns in stainless steel supply and rising raw material costs influenced the market. Indonesia's mining disruptions and China's demand policies support prices, though short-term gains face fundamental pressures.
• EU-27 Recycled Steel Exports Drop in 2024: The EU's recycled steel exports fell 18.7% to 7.359 million tons in H1 2024 but remained the top global exporter. Key buyers included Turkey (-17.6%), Egypt (-7.5%), and India (-38.6%). Despite a 16.4% decline, the USA ranked second, with Turkey and Bangladesh increasing imports.

Expert Opinion

• Prices for the 300 series are expected to rise, given the current high USD.
• Prices for the 400 series are also likely to remain on the higher side due to BIS issues.
• The 200 series is expected to perform well domestically as imports remain restricted.