Indian Stainless Steel Market Recovers in April; Click Here to Know Why!

The stainless steel industry in India rebounded in the month of April 2024 after facing constant pressure during the third quarter of FY24. Surging raw material costs and a balanced demand-supply scenario have driven prices upwards.

Why Did the Stainless Steel Market Rebound?

A constant surge in nickel prices has turned trends optimistic for the stainless steel industry. Indian steel mills have started to raise their prices to take advantage of the rally in nickel and stainless steel prices globally.

More than two-thirds of global nickel production is used to produce stainless steel. As an alloying element, nickel enhances important properties, such as formability, weldability, and ductility, while increasing corrosion resistance in certain applications.

India’s Top Producer Raises SS Prices Twice in April

India’s leading stainless steel producer has raised prices for the second time in April, implementing a total rise of Rs 7,000-8,000/ton (US$ 84-96).

Initially, the producer raised prices on April 19 by Rs 2,000/ton for SS 304 grade and Rs 3,000/ton for SS 316L in both HR and CR. Then, on April 21, the company announced a hike of Rs 3,000/ton for SS 304 and Rs 5,000/ton for SS 316 . This move is attributed to recovering trends amid rising nickel prices.

Nickel Price Movement

Notably, nickel, known as a key trendsetter in the stainless steel industry, has crossed the range of US$ 19,000/ton on LME’s futures. The prices of three months’ nickel futures saw a US$ 2,500/ton surge in April 2024, hitting record highs.

Today on 29th April, the LME’s nickel futures opened up by 0.13% and recorded at US$ 19,275/ton.

As of 26 April, the Shanghai Futures Exchange’s (SHFE) most-traded contract for nickel for June had also gained 4.7%  week-on-week and closed at Yuan 145,870/ton on Friday.

The surge in nickel prices was fuelled by rumours of significant purchases by the Chinese government and the potential state stockpiling of nickel. These rumours raised concerns about scarcity, heightening market speculation regarding the future availability of this essential raw material.

Considering further strengthening in nickel prices, stainless steel producers globally have reacted by raising their prices.

According to reports, major manufacturers of stainless steel based in China, Korea, and Taiwan are planning to raise their domestic and export prices for May due to surging nickel costs amidst optimistic price trends.

For instance. Yusco, Taiwan’s leading stainless steel mill, unveils May prices. Domestically, they maintain individual negotiations. While export prices vary on the region with the 300 series up by $100-$150/ton. However, the SS 430 remains unchanged and 316L surcharges are steady.

Will the Stainless Steel Market See Further Boosts in Offers?

Industry sources believe that an immediate reversal in Indian prices is less likely considering the trending high prices of nickel. Also, since there was a constant drop in prices in the last few months, Indian producers may postpone any reduction even if demand does not strongly support revised prices.

Since the Indian economy is forecasted to boost, suppliers remain bullish for demand and hence, are expected to keep prices strong in the coming days.

Another key factor behind the positive trend in the Indian market is the decrease in imports of stainless steel, which were much higher in the earlier months of 2023. This makes trends positive for the industry with balanced supply-demand in the domestic market.

Get latest steel news, market updates, and price trends on OfBusiness.