India: Stainless steel market under pressure as price hikes dampen demand

• Flats remain sluggish despite mill hikes
  
  
• Longs supported by tight supply conditions
  
  

India's finished stainless steel market remained under pressure this week, as successive price hikes weighed on demand and kept transaction volumes subdued. While global markets stayed firm, supported by elevated nickel prices and higher energy costs, domestic sentiment remained cautious with buyers limiting purchases amid uncertain demand visibility.

Flats segment sees resistance to higher offers

The flat products segment continued to witness muted activity, as downstream demand remained weak and buyers resisted higher offer levels. A leading domestic mill announced its second price hike in April, increasing 304 HR by INR 1,000/t, 316 HR/CR by INR 3,000/t, JT HR by INR 1,000/t, and JT CR by INR 2,000/t effective 21 April 2026, citing rising input costs.

However, the market struggled to absorb these increases. BigMint's benchmark 304 HRC held steady w-o-w at INR 217,000/t ex-Mumbai, while 316 HRC remained unchanged at INR 375,000/t. Although inquiries persisted, conversion into firm orders was limited, with buyers continuing hand-to-mouth procurement.

Import offers for June shipments reflected firm global cues, with 304 HR at $2,1302,185/t and 304 CR at $2,2902,345/t CFR India. For 316 grade, HR offers stood at $4,0504,055/t, while CR offers were at $4,1554,160/t, leaving limited arbitrage scope for domestic buyers.

Longs supported by cost pressures

In the longs segment, trading activity remained subdued due to limited inquiries. However, prices were supported by tight raw material availability and elevated replacement costs. 304L black round bars remained stable at INR 185,000/t ex-Mumbai, while 316L black round bars increased by INR 5,000/t to INR 320,000/t.

Raw material scenario

Outlook

The stainless steel market is expected to remain firm in the near term, supported by elevated nickel prices and persistent cost pressures. However, weak demand fundamentals and cautious buying are likely to restrict any significant rise in trading volumes. Developments in Indonesias nickel policy will remain a key factor influencing global and domestic price direction.