Prices for stainless steel dropped again this week as 304 HRCs retreated by ₹2,000/t and 316 coils declined by ₹5,000/t as mills responded to a combination of slowing demand and declining production costs. The decrease in buying since Diwali has been appalling, resulting in lower inquiry levels and forcing sellers to offer even bigger discounts just to maintain liquidity. At the same time, the temporary exemption on non-BIS imports allows for cheaper materials planned from overseas, which uniquely affects domestic mills that can't escape lower import pressure. Moreover, raw material markets have also pressured prices downward, especially after the decline in ferro-molybdenum prices to 4-month lows, which will further reduce input costs for 316-grade production and support mills in resetting prices downward.

With no relief on the demand front, newly available import options appearing, and as the overall sentiment remains negative in both domestic and Chinese markets, there are likely to be continued price pressures on stainless steel in the near term and anticipation that for prices are likely to decline further in December.