Union Budget 2025-26 Expected to Drive Growth in Stainless Steel Sector

Key Takeaways

• Stainless Steel Prices Stable: Prices for various grades, including 304 CR, SS 316L, and SS 201, remain stable, with slight variations based on material type.
• Demand Increasing for 200 Series: The demand for 200 series is up, fuelled by a shortage of imported material, while 300 and 400 series see moderate demand.
• Global Steel Demand to Rise: The World Steel Association predicts a 1.2% global steel demand growth in 2025, driven by economic recovery and potential reconstruction efforts.
• Union Budget 2025-26 Supports Sector: The Indian government's focus on infrastructure and sustainability is expected to drive further growth in the stainless steel industry.

Stainless Steel Price:

• Nickel opened today unchanged at $15,230/mt, while Copper opened today down by 1.01% at $8,957/mt.
• INR opened today against USD at 87.17/-.
• 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:

• Demand is slightly getting better in 300 series, but not that much, due to cash crunch.
• In 400 series also, demand is seen to be increasing.
• 200 series demand has further increased and is upbeat, due to shortage of imported material.
• No.4 PVC material demand is still on the rise as expected, both in 200 and 300 series, as observed in the past few months.
• The steel market in 2024 underperformed expectations, but global demand is anticipated to rise in 2025, supported by economic recovery and a potential end to the Russia-Ukraine conflict, which could boost reconstruction demand. The World Steel Association forecasts global steel demand will grow by 1.2% in 2025.

Stainless Steel News:

• The stainless steel industry has praised the Union Budget 2025-26, highlighting its focus on infrastructure, manufacturing, and sustainability, which are expected to drive growth in the sector and solidify India’s global leadership in stainless steel production.
• Luxembourg-based Aperam SA has completed the acquisition of Universal Stainless & Alloy Products in the U.S., enhancing its presence in the market. U.S. domestic steel production reached 1.64 million tons by January 24, a slight dip of 0.2% from the previous week.
• The European Central Bank (ECB) cut its key interest rates by 25 basis points, aiming to reduce borrowing costs and stabilize inflation. The rate adjustments are expected to support economic demand despite challenges in some sectors.

Expert Opinion:

• Prices of 300 series are anticipated to rise due to the high USD.
• 400 series prices are likely to stay elevated because of the BIS issue.
• 200 series is expected to perform strongly in the domestic market as imports are restricted.