India's stainless-steel market showed mixed price movement this week. The prices of 304-series hot-rolled coils (HRCs) remained steady at ₹190,000 per tonne ex-Mumbai, while prices for 304L black round bar increased by ₹2,000 to ₹160,000 per tonne. 316-series stainless steel experienced rising prices, with HRCs rising by ₹5,000 to ₹345,000 per tonne, while cold-rolled coils (CRCs) have risen to ₹350,000 per tonne due to rising costs of molybdenum. Raw materials were mixed; ferro molybdenum prices fell sharply, taking some cost pressures off producers, while prices for ferro chrome and ferro silicon were elevated, causing upward pressure on costs of production.

Outlook:

In the near term, India's stainless-steel market is likely to improve as raw material costs rise and domestic demand remains relatively stable. While global nickel stocks are at elevated levels, which is likely to dampen sharp increases, rising input costs for 316-series grades should nudge mills to consider further increases in pricing. Seasonal domestic demand factors and slowness in buying sentiment may also contribute to a steady market in the near term. However, trading activity is likely to improve over the next several weeks due to increased buying activity by fabricators and key end-user sectors.