How Stainless Market Performed, Are Price Revisions Ahead?

The Indian Stainless Steel market has been riding a wave of growth since July 2023, driven by several key factors such as robust domestic demand, rising raw material costs, and import challenges stemming from Bureau of Indian Standards (BIS) concerns.

Let’s delve into the recent performance of the Indian Stainless Steel market and explore whether price revisions are on the horizon or not.

Latest Updates

• Import Challenges & BIS Concerns: One of the critical challenges facing Indian Stainless-Steel buyers is the delay in renewing BIS licenses by major exporting countries. As a result, many global suppliers have seen their licenses expire between July and August. This delay in renewals has created uncertainty in terms of imports, allowing Indian Stainless-Steel manufacturers to seize the opportunity and continue raising their prices.

• Price Surge: Data maintained by OfBusiness reveals that prices have surged significantly since the second half of July, with increases ranging from Rs 5,000 to Rs 25,000/ton ($60 to $300/ton). Jindal Stainless, for instance, raised prices by a substantial Rs 25,000/ton for SS 316L products. This price escalation has left market participants pondering whether the current prices are sustainable in the long run.

• Price Sustainability: Given the tightening import norms and the persistence of BIS concerns, industry experts remain hopeful that Stainless Steel prices are less likely to reverse downward in the immediate future. Additionally, the festive season has led to increased demand for certain Stainless-Steel products, further bolstering prices due to a supply shortage in the market in a few specific grades.

Raw Materials Market

Several factors in the raw materials market are contributing to the buoyancy of Stainless-Steel prices:

• Ferro Chrome: While prices have witnessed a slight drop recently, they remain substantially higher by Rs 9,000-10,000/ton than in the previous month. The current price of (HC60%, Si:2%) is approximately Rs 124,000-125,000/ton ex-works, Jajpur.

• Ferromolybdenum: The prices have seen a slight decrease in September 2023 but remain elevated, hovering around Rs 2,961,000/ton ex-works, Nagpur, for Mo-60%. This is significantly higher than the average prices of Rs 2,50,000 to Rs 2,70,000/ton recorded during April and July 2023.

• Nickel: Nickel futures on the London Metal Exchange (LME) have rebounded from September’s lows ($19,485/ton), reaching around $19,950/ton on 15 September. Speculation of further price surges arises from disruptions caused by flash floods in Indonesia, impacting Nickel mining operations in the Weda Bay Area. This optimism bodes well for the 300 series of Stainless Steel.

Market Outlook

Considering the confluence of factors, including seasonal demand improvements, import challenges, and high raw material costs, it appears that the domestic Stainless Steel industry is poised to report positive price trends in the near future. Immediate and sharp price declines seem less likely, according to industry experts.

OFB’s Insight

The Indian Stainless Steel market is navigating through challenges but is showing resilience and growth potential, with prices likely to remain on an upward trajectory in the coming days.