India’s stainless steel market exhibited mixed trends during mid-December. Finished flats prices witnessed an upward movement, with 304 HRC assessed at ₹182,000/t ex-Mumbai and 316 HRC at ₹335,000/t, both gaining ₹2,000/t w-o-w basis. This upward trend was attributed to selective price hikes from a leading domestic producer, higher global cost pressures, a strengthening US dollar, and Tsingshan’s $30/t increase in stainless flat prices. In addition, there was an improvement in the market's perception of flat products following China's announcement that it would implement a quota system for exporting finished stainless steel products starting 1st January 2026. On the other hand, prices for stainless steel long products continued to decline due to weak demand for downstream products as well as an existing surplus of inventory. Therefore, prices for 304L and 316L round bars dropped by ₹2000/tonne each to ₹153,000/tonne and₹268,000/tonne (ex-Mumbai), respectively.

Outlook:

The near-term outlook remains subdued as year-end slowdown, cautious buying, and adequate inventories continue to limit market activity. There may be some support for finished flat products from both raw material prices and global regulatory developments, but substantial upward price movement for flat products will be limited due to low demand in the downstream segment. Until demand for downstream products begins to rise, stainless steel long products are expected to remain under price pressure. Market participants expect that there will be an improvement in activity in the sector beginning sometime after mid-January, when procurement cycles return to normal and visibility on demand has improved.