Stainless Steel Rates Firm; 200 Series Sees Strong Domestic Demand

Key Takeaways

• Nickel and Copper Up: LME Nickel rose 0.76% and copper surged 4.19%, supporting firmness in stainless steel prices.
• 200 Series Sees Strong Demand: Shortage of imports is keeping 200 series stainless steel demand and prices high domestically.
• Global Policy Impacts Supply Chains: US and EU tariff changes are influencing trade flows and investment plans in stainless steel.
• 300 & 400 Series Prices Firm: Limited supply and high USD exchange rate are keeping prices for 300 and 400 series supported.

Stainless Steel Price:

• Nickel opened today up by 0.76% at $14,530/MT, while Copper opened today up by 4.19% at $8,974/MT.
• INR opened today against USD at 86.04/-.
• Current retail price for 304 CR wider 2B is now running approximately at Rs.199-200/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.320-323/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.
• Indian flat stainless steel producers are buying scrap after the service of the finished-goods at the following latest prices (plus GST):-
• 304: Rs.1,27,886/MT
• 316L: Rs.2,25,065/MT
• J5 Patta: Rs.72,000/MT
• J8 Patta: Rs.70,000/MT
• 430: Rs.56,317/MT

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. 
• The 200 series remains strong, driven by a shortage of imported material.
• No.4 PVC material demand continues to rise across both the 200 and 300 series, a trend that has been consistently observed over the past few months.

Stainless Steel News:

• In February, Taiwan's stainless steel wire rod imports rose to 818 tons, up 9% from January and the highest in over a year. Exports dropped 22.7% to 1,309 tons. Import prices rose by NT$10,702, returning above NT$160,000, while export prices increased NT$7,756 to nearly NT$150,000/ton.
• New US tariffs are shifting steel supply chains. GCC steelmakers like Emsteel plan to expand outside the US, while Ducab Metals aims to buy cheaper raw materials from China. Experts say the 10% US tariff on GCC products is relatively low, making the region more attractive to investors.
• US steelmakers saw profit margins fall to 1.8% in Q4 2024, down from 21.2% in Q3 2021, due to weak demand and lower prices. Despite this, US$10 billion in cash reserves and recent price hikes, especially in flat products, support stability. Section 232 tariffs were reinstated to boost local steel.
• Trump has ordered a re-review of Nippon Steel’s proposed U.S. Steel acquisition, which had been blocked earlier. Markets reacted strongly: U.S. Steel shares rose nearly 14%, and Nippon Steel surged almost 10%. Both companies are hopeful the deal will now be approved.
• The European Commission held a dialogue with steel and metals industry leaders to address the impact of US tariffs. The industry welcomed the EU’s Action Plan and Clean Industrial Deal and urged fast implementation.

Expert Opinion:

• 300 series prices are likely to see an upward trend due to the high USD exchange rate.
• Prices for the 400 series are also expected to stay elevated, influenced by the BIS issue.
• 200 series is also expected to do very well domestically due to limited imports.