India’s stainless steel scrap market moved upward last week despite a 3 percent w-o-w decline in the nickel prices. Domestic 304-grade scrap price rose by ₹1,000/t to ₹119,000/t DAP Delhi, while nearshore-origin 304 scrap increased $20/t to $1,325/t CFR Mundra. The 316-grade scrap was the most active, with imported quotes at approximately $2700, but a large spread between bids and offers, with bids supported by increased prices for molybdenum oxide because of limited supplies in the USA. The domestic rate of the 316-scrap increased by ₹2000 to reach ₹222000. Additional support came from a stronger dollar, which raised import costs and made locally sourced scrap more attractive to mills.

Outlook:

Prices are likely to remain elevated in the near term, supported by continued dollar strength, firm molybdenum oxide values, and steady mill procurement activity. Due to currency pressure continuing, it is predicted that domestic scrap will dominate until LME nickel prices experience either sustained gains or decreased demand for finished stainless steel. Otherwise, there will be an end to future increases and a tightening of bid/offer spreads particularly in high-alloy grades like 316.