India: Stainless steel scrap market firms on tight supply, higher import offers
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- Domestic availability remains constrained
- Buyers cautious amid weak downstream demand
India's stainless steel scrap market remained steady to firm in the week ended 24 April, supported by tight domestic availability and stronger import offers. Sentiment improved following gains in nickel prices, driven by Indonesia's quota cuts and revised ore pricing policy, which lifted raw material expectations across the stainless steel value chain.
Nearshore-origin SS 304 scrap offers increased to $1,450-1,480/t, while SS 316 offers were heard around $2,800/t. However, trading activity remained limited at these elevated levels. Market participants noted that constrained domestic supply has increased reliance on imports, although higher prices continue to restrict deal closures.
The 316 scrap segment witnessed supply constraints, with limited availability supporting prices. Market participants indicated that, despite underlying demand, buyers are increasingly substituting with 304-grade conversions due to higher costs and tighter availability of 316 scrap, impacting direct procurement in this segment.
The broader sentiment is supported by a combination of elevated freight costs, firmer nickel prices, and global policy uncertainty. At the same time, buyers remain cautious about building inventory too aggressively, especially with downstream stainless steel demand still uneven and conversion margins under pressure. This has kept trading active, but not speculative.
BigMint's scrap assessments
Nearshore-origin SS 304 scrap (loose): $1,440/t, up $20/t w-o-w.
Nearshore-origin SS 316 scrap (loose): $2,750/t, up $20/t w-o-w.
Nearshore-origin SS 201 scrap (loose): $730/t, steady w-o-w.
Nearshore-origin SS 430 scrap (loose): $660/t, up $5/t w-o-w.
SS 304 scrap, DAP Delhi: INR 136,000/t, up INR 1,000/t w-o-w.
SS 316 scrap, DAP Delhi: INR 250,000/t, INR 4,000/t w-o-w.
SS utensil scrap, DAP Delhi: INR 71,000/t, INR 1,000/t w-o-w.
Outlook
The market is expected to remain firm in the near term, supported by tight domestic supply, higher import offers, and stronger nickel sentiment. However, cautious buying and weak downstream demand, particularly for 316 grade, are likely to cap further upside.
