The stainless-steel prices of 304-series hot rolled coils (HRCs) experienced a w-o-w increase of ₹2,000 per tonne. Prices are at ₹192,000 per tonne ex-Mumbai. Rising input costs primarily drove this in terms of raw materials, particularly nickel and ferrochrome, both of which have witnessed strong prices based on global supply and moderate speculation. Although domestic demand is weak, mill operators have had to pass the cost burden onto the purchase prices of 304-grade coils to maintain their margins. Meanwhile, the price for 316-series stainless steel HRCs was essentially unchanged at ₹345,000 per tonne, which implies the possible cost pressures seem to be balanced with subdued activity. Ferro molybdenum, an important alloying ingredient for 316 grades stainless, went down ₹26,000/t, thus lessening overall pricing pressures on other raw materials. Nevertheless, prices remain high, largely due to the continued firmness of other raw materials, along with mills' hesitance around production time.

Outlook:

As it has been anticipated, prices for stainless steel HRC, especially 304 and 316, may remain steady or increase in the near future. Global sentiment has improved, particularly in light of price increases from some of the larger producers, while downstream demand for products such as appliances/machinery has remained steady. The market is poised for a tempered bullish position. Producers are likely to remain disciplined regarding production, aligning production with weak demand and high production costs, enabling pricing to remain somewhat supported throughout the first part of Q4.