Indian Stainless Steel Market: A Mixed Demand Scenario

The Indian Stainless Steel market is currently experiencing mixed demand in various grades and sizes of Stainless Steel. While there is some demand for specific grades and sizes, the rate expectation is lower than before, leading to a decrease in sales. 

However, the future outlook seems positive, with the opening up of project works and the manufacturing season of certain electrical appliances expected to boost demand.

Additionally, the outlook for Nickel, an important component of Stainless Steel, is also positive, thanks to the EV price cuts in China and the improvement of the retail industry in Japan. This article explores the current scenario and future outlook for the Indian Stainless Steel market.

Trade Scenario

• Domestic demand is active presently and seems to remain supported. If specified grade and size in terms of demand. There is demand for SS 304 CR in 1mm , 3mm 304 CR, 3.5mm 304 HR, 3/5/6mm 316L HR, special finishes 201 CR grade, and 2mm/3mm 430 CR 2B coils.

• The usual demand is present in 316L 2.8mm, 2.9mm, 3.0mm, 4.0mm, and 5.0mm HR coils. However, the rate expectation is lower than before, leading to reduced sales. As a result, too much selling-buying is not taking place, and some impact is definitely there on sales.

Prevailing Prices And Change In Trade Tactics By Jindal Stainless

Domestic

• The retail price for 304 CR 2B is Rs 218/kg for Rimjhim, compared to Jindal’s Rs 222/kg. Jindal’s SS 304 HR N1 is at Rs 212/kg basic, while 316L HR N1 is at Rs 363/kg, and 316L CR 2B is at Rs 375/kg FOR Delhi. Rimjhim’s 201/202/RT grade is offered at Rs 130/kg. Rimjhim RT N1 2B is Rs 115/kg basic, FOR Delhi basis.

• Jindal Stainless Limited, one of the major players in the Indian Stainless Steel market, has recently absorbed all its lifting discounts and adjusted its base prices accordingly to avoid any anomaly in the base prices in this financial year. This step was taken to abolish all the confusion created by different stockists/traders/distributors having different rate offers for the same products. This confusion was seen throughout the earlier financial year 2022-23, as per sources report to Ofbusiness.

Imported Material

• SS 201 J2 imported CR is being retailed at Rs 127/kg, No.4 PVC finish at Rs 130/kg, and No.8 mirror finish at Rs 140/kg, FOR Delhi.

Future Outlook

The SS 300 series is expected to have a positive outlook in the coming days, owing to the opening up of project works and the manufacturing season of certain electrical appliances like the geyser industry. Considering the market scenario, it is advisable to keep small optimum quantities of generic-size material in stock with short delivery timings.

Nickel is an essential component of Stainless Steel, and its outlook is positive. In China, there have been EV price cuts, which are expected to increase the demand for Nickel, and in Japan, the retail industry is improving, leading to an increase in vehicle sales. In India, the outlook for EV sales is also positive. This positive outlook for Nickel is expected to have a cascading effect on the Indian Stainless Steel market.

OFB’s Insight

The Indian Stainless Steel market is currently facing a mixed demand scenario, but the outlook seems to remain optimistic. The recent steps taken by Jindal Stainless Limited to avoid confusion in base prices is a positive development. While the prices of Stainless Steel products may vary, it is advisable to keep small optimum quantities of generic-size material in stock with short delivery timings. The positive outlook for the EV industry in India will ultimately boost the demand for Stainless Steel in the country.

Read more: Indian Scrap Market Recovers, Supported By Slight Increase In Steel Prices

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