The price of stainless steel in India increased again this week as steel mills continue passing on the higher cost of raw materials (inputs) to the market due to the dramatic rise in NICKEL prices, which occurred because of a supply curtailment in Indonesia. The high level of LME nickel and the high price of Ferro Molybdenum have placed significant cost pressure on mills, specifically for the manufacture of 316-series stainless steel products, where the price increases were steeper than for 304-series stainless steel products. The flat product sector has been the main contributor to the current upward trend, with improving domestic and strong international prices. This has enabled mills to increase their selling prices on an almost weekly basis without significant pushback from customers. The long product sector began to see similar price increases to the flat product sector; however, for long products, the increases were primarily due to increased costs for producing these materials rather than due to increased customer demand.

The price outlook for stainless steel in the near term will be stable, as long as nickel prices remain uncertain and the supply from Indonesia remains limited. Mills will likely take a wait-and-see approach regarding pricing, while looking at raw material prices and monitoring the sustainability of demand. A further rise in nickel or molybdenum may also result in additional price increases for higher alloy grades, but if nickel prices were to suddenly correct or if domestic and export demand significantly decline, then the rate of increase would be slowed down; however, the strong global indicators and input costs will likely provide some downside protection.