Stainless Steel Prices Stable; Nickel Unchanged, Copper Rises Slightly

Stainless Steel Prices

• Nickel opened today unchanged at $16,670/ton, while Copper opened today up by 0.28% at $9,209/ton.

• INR opened today against USD at 83.93/-.

• Current retail price for 304 CR wider 2B is now running approximately at Rs.198-201/kg basic price range, ex-Delhi, while for narrow, it is approximately Rs.3-5/kg cheaper, plus GST.

• SS 316L imported material is now being retailed in the price range of Rs.317-321/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.43-148/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 is slightly better in 304 & 316L (CR & HR), in generic sizes, as compared to previous 2 months.
• There is not enough demand in ferritic grades, except some railway fabrication usage in 409M/X2CrNi12/IRSM 44-97 grades.
• Good demand is being observed in No.4/Matte PVCfinish in 201 grades, due to short supply from domestic players, and non-renewal of BIS for imported material.
• Decent demand is also being observed in 304 narrow sizes, for applications like pipes and tubes or rerolling usages, due to short supply in imported material.

Stainless Steel News

• Last week, China's nickel and stainless steel futures showed a slight upward trend amid volatility, with the spot market remaining in a stalemate. As the traditional peak season, September and October approaches, China's domestic production for September stayed stable at 3.25 million tons, with minor adjustments across different series. Meanwhile, Indonesia's production increased by 20,000-30,000 tons, reaching 450,000-460,000 tons. Despite the peak season, demand in China has not shown significant strength, downstream customers and some market traders have low inventory levels, and potential interest rate cuts by the U.S. Federal Reserve might prompt minor replenishment, possibly causing a slight price rebound. On the raw materials side, nickel pig iron prices remain strong, while high-carbon ferrochrome is weak but stable, offering continued cost support for stainless steel. The overall market environment remains moderate, with uncertainty about whether the peak season expectations will be met.

• Synergy Steels has reported a Compound Annual Growth Rate (CAGR) of 4.36 per cent in total finished stainless-steel consumption over the past five financial years. This growth has been made possible by the stability, longevity and affordability that are inherent in the use of stainless steel across the various industries. The government’s ongoing consideration of the National Steel Policy (NSP) 2017 and formulation of a stainless steel and green steel policy will yield a positive result for the company and improve the competitiveness of the industry hence contributing to the nation’s economy.

• Feng Hsin Steel Co. Ltd., a Taiwan-based company principally engaged in manufacturing, processing, and trading steel products, declared its product list prices for this week. The rebar, scrap, and section steel prices remain unchanged at NT$18,500/MT, NT$9,400/MT, and NT$25,700/MT, respectively. Meanwhile, compared to last week, the prices of Japan’s H2 scrap kept flat at US$345/ton, and the US containerized scrap remained at US$328/ton. Australian iron ore prices went up from US$95.85/ton to US$100.2/ton. Feng Hsin indicated that there were no quotations for the US’ scrap shipment last week.

• In July 2024, Indonesia's nickel product exports reached about 954,000 tons, reaffirming its leading role in the global nickel market, according to the Indonesian Ministry of Trade. Among them, China remained the largest buyer, importing nearly 877,000 tons, which accounted for 91.88% of Indonesia's total nickel exports for the month. Besides China, India and Japan also served as significant markets for Indonesian nickel. In July, Indonesia exported about 44,000 tons to India (4.61%) and 6,800 tons to Japan (0.71%). Despite their smaller shares, these countries are crucial to Indonesia's export strategy. From January to July 2024, Indonesia's cumulative nickel exports totaled around 6.43 million tons, reflecting continued robust growth in the sector.

• Recent data indicated a steady rise in copper prices, with the weekly average price of 1# copper cathode reaching around CNY 73,800/ton, up by 1.97% week on week. In East China, bare bright copper and baled copper cable scrap prices also rose by nearly 2.5%. The price increase, driven by higher crude oil prices and expected US interest rate cuts, has led to a significant boost in the supply of secondary copper. Traders in Linyi Metal City (China) report increased stockpiling and higher throughput as secondary copper rod plants resume production. In the future, copper prices are expected to keep rising due to supply constraints and improving macroeconomic conditions. With better recycling efficiency and the cautious return of production, the secondary copper market in Linyi Metal City is poised for further growth.

• Power Nickel (Canada) has expanded its use of Fleet Space Technologies’ ExoSphere — a cutting-edge exploration tool, to better understand its projects along Chile’s Atacama Fault system. The tool has been deployed across Power Nickel’s Zulema, Palo Negro and Tierra de Oro sites, uncovering significant faulting and new geological structures. These insights are helping the company improve its exploration efforts with detailed 3D mapping of the area. Power Nickel’s experience with the NISK project in Quebec has set a precedent for using advanced technologies in its Chilean operations. The company’s goal is to unlock the exploration potential of 20,235 hectares in Chile while maintaining a commitment to sustainability. By applying ExoSphere’s 3D mapping capabilities, Power Nickel has identified new targets and improved its exploration outcomes.

Expert Opinion

• Both 304 & 316L are expected to have a medium to good run in this week, owing to the slight raw material price increase.
• The 400 series is continuing with its dull run, due to the lack of demand in ferritic grades.
• The 200 series is still performing strongly, in special finishes like N4P (Matte PVC) & N8P (Mirror PVC) owing to the lack of imported products in the market.