Indian Stainless Steel Market Maintains Stability Amid Fluctuating Nickel Futures

Nickel, which sets trends for the Stainless Steel market, has experienced significant price fluctuations since the second half of May 2023, leading to moderate trade activities in the Stainless Steel market and a firm price range.

The Indian Stainless Steel market has maintained stability week-on-week, despite the volatile nature of Nickel futures prices. Let’s explore current market scenario of Stainless Steel market as well as prices.

Current Market Scenario

• Nickel Price Index Establishment In Indonesia

In recent developments, Indonesia, the largest global producer of Nickel, is considering the establishment of a Nickel Price Index this year. This decision was announced by Septian Hario Seto, a senior official from the Investment Coordinating Ministry, during a conference held in Jakarta. Furthermore, Indonesia has decided to postpone its plans to impose export taxes on Nickel products, as per media reports.

• Uncertainty In Global Market

Following this news, market players are curious about how the global market will fare going forward. The deferral of export taxes on Nickel and the potential establishment of a price index raises concerns about a potential supply glut in the international market. As a result, Nickel prices are expected to remain less supported in the future.

• Impact On Stainless Steel Industry

With less support in the Nickel market, participants in the Steel industry are hopeful for further softening in Stainless Steel prices. The oversupply in the market, along with competitive imports, has put pressure on producers to keep prices lower. To improve sales and dispatch in the domestic market, producers have also offered additional lifting discounts.

• Mills’ Plans For June Price Revision

Major Stainless Steel producers in India, such as Jindal Stainless and Rimjhim Ispat, have already offered discounts and implemented price reductions in May 2023. Due to the volatility in Nickel futures and the recent price adjustments, there are fewer chances for immediate price revisions in June 2023.

Current Prices

• Rimjhim Ispat
  • 304 CR 2B (Retail)- Rs. 202/kg
  • 304 HR N1- Rs. 192/kg
  • 201/202/RT Grade- Rs. 124/kg
  • RT N1 2B (Basic)- Rs. 113/kg
  • RT N1 NBT Grade (Basic)- Rs. 115/kg

• Jindal Stainless
  • Wider 304 CR 2B- Rs. 216/kg
  • Narrow 304 CR 2B- Rs. 212/kg
  • 304 HR N1 (Basic)- Rs. 203/kg
  • 316L HR N1- Rs. 343/kg
  • 316L CR 2B- Rs. 355/kg

Note- The prices are FOR Delhi basis.

• Imported Stainless Steel
  • SS 201 J2 CR (Retail)- Rs. 127/kg
  • No.4 PVC Finish- Rs. 130/kg
  • No. 8 Mirror Finish- Rs. 140/kg

Note- The prices are (GST exclusive) FOR Delhi basis.

• SAIL (Salem)
  • 409M HR- Rs. 117/kg
  • 409M CR- Rs. 127/kg
  • SS-LNA- Rs. 133/kg

Note- The prices are ex-plant (Salem) basis.

OFB’s Insight

Considering the slight improvement in demand observed by the mills after the price reductions in May 2023, the prices of Stainless Steel are expected to remain stable for a short period.

To maintain orders and supply, suppliers are likely to keep their offers stable in the initial days of June. However, the volatility in Nickel futures and global market dynamics will continue to influence the Stainless Steel industry’s stability and pricing in the coming months.

Read more: Price Decline And Global Challenges Impact India’s Structure Market

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