This week saw increases in stainless steel scrap prices in India, bolstered owing to improved mill demand, limited domestic availability of scrap in the marketplace, and increased input costs. Domestic, 304-grade scrap held stable at ₹114,000/t ex-Delhi, whereas imported 304-grade Stainless-steel scrap moved up slightly to $1,290/t CFR Mundra, a $10/t increase w-o-w basis.

The tight supply due to limited scrap availability and some concern from sellers before the upcoming festive season contributed to the support, especially with foundries and mills facing competition for the limited scrap available. Though LME nickel prices slid back by 1% in the week to $15,272/t, a strong exchange rate has also driven pressure on import costs, which are also moving onto finished stainless prices as they are absorbed.

Outlook:​

The prices in the near term are expected to remain firm, supported by stable demand and elevated costs of key raw materials like nickel and chrome. Moreover, the overall sentiment is favourable, but the market is expecting suppliers to reduce their inventory levels before the winter holidays, which could lead to temporary price increases.