Stainless Steel Prices Stable; Nickel and Copper Drop

Key Insights

• Price Movement: Nickel and copper opened lower today, with INR stable against USD. The 304 CR wider 2B is priced at Rs.195-198/kg, while 316L HR imports range from Rs.318-322/kg, with domestic materials slightly higher.
• Demand and Supply: The 300 series faces lower demand due to liquidity issues, and ferritic grades show similar trends. In contrast, the 200 series remains in demand due to limited import supply. Demand is rising for No.4 PVC finishes across 200 and 300 series, driven by scarce domestic availability.
• Industry Developments: Walsin Lihwa is increasing its stake in an Indonesian facility, while POSCO may divest low-profit operations in China.
• Future Outlook: Demand for the 300 and 400 series remains limited, while speciality finishes in the 200 series are likely to see continued interest due to supply constraints.

Stainless Steel Prices

• Nickel opened today down by 0.28% at $16,025/mt, while Copper opened today down by 0.28% at $9,305/mt.
• INR opened today against USD at 84.40/-.
• 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. 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 has gone down at present in the 300 series, due to a lack of funds in the market.
• Even in ferritic grades, demand is not that great.
• The 200 series demand is still there, due to lack of imported material.
• No.4 PVC material demand is on the rise, both in 200 and 300 series, due to a lack of production of this finish from the domestic suppliers and scarce availability of stock.

Stainless Steel News

• Walsin Lihwa’s subsidiary, Walsin Singapore, will invest $9.15 million in PT Walsin Everising Specialty Steel Indonesia, increasing its shareholding to 51%.
• POSCO Group is considering selling its POSCO Zhangjiagang Stainless Steel plant in China as part of a restructure to offload low-profit assets.
• The US Department of Commerce completed an administrative review, finding South Korean producers of large diameter welded pipes received subsidies, covering imports from 2022.
• With Trump’s re-election, additional tariffs on imports and potential withdrawal from the Paris Climate Agreement are expected, potentially affecting US Steel and EV mandates, while encouraging domestic fossil fuel production.

Expert Opinion

• The SS 300 series is expected to have a dull run in the present and upcoming week, because of payment shortages and upcoming festive holidays.
• The SS 400 series performance is also expected to be dull, except for 410S grade, where there will be considerable demand in thinner gauges.
• The SS 200 series is expected to be performing satisfactorily, in special finishes like N4P (Matte PVC) & N8P (Mirror PVC) owing to the lack of imported products in the market.