India: Stainless steel finished flats, longs prices remain steady w-o-w amid moderate demand

• Slowdown in govt procurement weighs on demand
  
  
• Chinese stainless steel prices drop marginally w-o-w
  
  

India's stainless steel (SS) finished flats prices remained rangebound w-o-w, while longs prices were stable this week amid persistent weak demand.

BigMint's benchmark assessment for stainless steel 304 series hot-rolled coils (HRCs) hovered at 184,000/tonne (t), while 304L (25-100 mm) black round bars stood at INR 160,000/t, both ex-Mumbai.

LME nickel rangebound w-o-w

At the time of reporting, three-month nickel prices on the London Metal Exchange (LME) stood at $15,425/t, rangebound against last week's $15,520/t. Nickel stocks in LME-registered warehouses stood at 200,862 t, a marginal rise compared to 199,998 t in the previous week.

Market insights

Additionally, as perBigMint's assessment, SS 316 HRCs stood at INR 321,000/t and 316 cold-rolled coils (CRCs) at INR 329,000/t ex-Mumbai, both stable w-o-w.

The market for stainless steel finished products remained under pressure, with subdued demand weighing heavily on prices. Despite stable raw material costs, finished product prices declined by INR1520 per kg over the past few months, significantly compressing producer margins.

Adding to the headwinds is a noticeable slowdown in domestic government and infrastructure projects, traditionally key drivers of stainless steel consumption. Export demand has also been tepid, particularly from the European Union a major destination for Indian stainless steel exports contributing further to the bearish market scenario.

Overall, the stainless finished segment is experiencing a period of stress marked by weak demand, margin erosion, and limited recovery signals in both domestic and international markets.

Meanwhile, SS 316L black round bars were at INR 270,000/t, while 316L (25-100 mm) bright bars were at INR 286,000-288,000/t, both ex-Mumbai. Furthermore, SS 304 (5-16 mm) wire rods stood at INR 156,000/t ex-Mumbai. Prices of all products were steady w-o-w.

A trader source said, "Domestic flat stainless steel demand is moderate but slowing with the onset of monsoon. Trading activity has eased, though major downside appears limited. Globally, sentiment remains weak amid US tariff threats and Tsingshans production cuts. Additionally, Chinas factory activity contracted in May, highlighting waning demand and ongoing pressure on the international stainless steel market".

Chinese stainless steel prices

In China, prices of domestic stainless steel 304-grade cold-rolled coils (CRCs) stood at RMB 13,850/t ($1,926/t) exw, marginally down w-o-w, while FOB tags of 304-grade CRCs were at $1,910/t.

Raw material scenario

Indian ferro molybdenum prices witnessed an increase of INR 77,000/t ($896/t) as compared to the assessment on 28 May. Prices increased as demand picked up both in the global as well as domestic markets.

As per BigMints assessment on 4 June, ferro molybdenum prices in India were INR 2,630,000/t ($30,598/t) exw.

Uptick in Chinese prices: Ferro molybdenum (Mo:60%) prices in China inched up by RMB 2,000/t ($278/t) w-o-w to RMB 247,500/t ($34,354t) exw-Inner Mongolia. Prices rose amid tight availability of molybdenum concentrate. Also, as environmental protection measures and production restrictions in key producing regions have limited the availability of raw materials, smelters maintained a strong willingness to raise prices.

Indian ferro silicon (70%) prices stayed largely stable last week, inching down by INR 200/t ($2/t) in comparison to the assessment on 26 May. Prices were stable as the market was muted awaiting Bhutan's offers for June.

Ferro silicon prices in India were INR 94,300/t ($1,104/t) exw-Guwahati as on 2 June. In Bhutan, prices edged down by INR 100/t ($1/t) w-o-w to INR 94,900/t ($1,111/t) exw. No deals were reported last week as the majority of sellers were sold out or were catering to previously booked orders.

India's ferrous scrap market

Indias imported ferrous scrap market stayed largely stable w-o-w, with limited trading activity as sluggish finished steel demand and cautious buying persisted. Mills remained on the sidelines ahead of the monsoon season, delaying purchases amid slow construction activity and increased use of alternatives.

EU-origin shredded scrap was assessed at $364-368/t CFR Nhava Sheva, while HMS 80:20 hovered at $345-348/t CFR.

Outlook

In the near term, stainless steel prices are expected to remain stable within a narrow range, with market activity likely to remain moderate.