India: Stainless steel prices rise on LME nickel surge but demand remains subdued

• Nickel-led cost push lifts stainless steel prices
  
  
• Longs trades remain cautious and limited
  
  

India's stainless steel finished market moved higher in the week ended 6 May 2026, tracking the rally in London Metal Exchange (LME) nickel, which briefly touched $20,000/t amid Indonesias mining quota cuts and the revised HPM pricing mechanism tightening ore supply.

Flats segment sees cost-driven increase

The flat products segment remained firm, supported by rising global nickel prices, although downstream demand stayed subdued with buyers resisting higher offer levels. A major stainless steel producer revised HR and CR coil prices effective 3 May, with 300 series gains driven by firm nickel.

Meanwhile, QCO exemptions increased import pressure on the 200 series, leading to corrections. Prices were revised as follows: 304 HR up INR 3,000/t, 304 CR up INR 4,000/t, 316 HR/CR up INR 8,000/t, while JT coils declined by INR 6,000/t.

BigMint's benchmark 304 HRC increased by INR 9,000/t, reaching INR 223,000/t ex-Mumbai, while 316 HRC stood at INR 390,000/t, up by INR 10,000/t. Although inquiries persisted, conversion into firm orders was limited, with buyers continuing hand-to-mouth procurement.

Prices of 200-series flats were reduced in the latest revision by a leading producer following the extension of QCO exemptions until 26 October 2026, which has eased import flows into India. Market participants noted that imports, earlier routed through other countries, are now arriving directly from China, improving availability and making procurement more accessible for domestic buyers.

In the import segment, China-origin 304 CRC offers were heard at $2,2602,380/t FOB Shanshui. Market participants noted that while domestic prices are strengthening, firm Chinese market conditions are limiting import competitiveness into India.

Finished longs market remains cautious

In the longs segment, market participants remained on wait-and-watch mode as nickel prices shot up today.

A trader noted that prices were trending upward, but buying interest remained weak, with market participants adopting a cautious approach. Limited transactions were reported, as buyers awaited clearer direction before committing to fresh purchases.

304L black round bars increased by INR 5,000/t, standing at INR 195,000/t ex-Mumbai, while 316L black round bars increased by INR 15,000/t to INR 340,000/t.

Raw material scenario

Outlook

The stainless steel market is expected to remain firm in the near term, supported by elevated nickel prices and sustained cost pressures. However, subdued demand and cautious buying sentiment may cap trading volumes. Developments in Indonesias nickel policy and global alloy price trends will remain critical for price direction.