OfBusiness Stainless Steel Dailies | 26th October 2023

Price

• Nickel opened today down by 0.41% at $18,130/ton, while Copper opened today down by 0.48% at $7,994/ton.
• INR opened today similarly against USD at 83.17/-. Jindal Stainless Limited’s share opened today at Rs. 456.10/- (up by 0.70%).
• Rimjhim’s retail price for 304 CR 2B is now running at Rs. 202/kg, compared to Jindal’s Rs. 214/kg (for wider) and Jindal’s Rs. 210/kg (for narrow). Jindal’s 304 HR N1 is at Rs. 201/kg basic against Rimjhim’s Rs. 192/kg, while 316L Jindal HR N1 is at Rs. 348/kg, and 316L Jindal CR 2B is at Rs. 360/kg.
• SS 201 J2 imported CR is being retailed at Rs. 133/kg, No.4 PVC finish at Rs. 136/kg, and No.8 mirror finish at Rs. 146/kg, FOR Delhi (plus GST).
• Rimjhim’s 201/202/RT grade is being offered at Rs. 130/kg, RT N1 is Rs. 119/kg basic, while RT N1 NBT grade is Rs. 123/kg basic (FOR Delhi basis).
• SAIL Salem’s 409M HR price is Rs. 115/kg, and 409M CR price is Rs. 129/kg, while SS-LNA prices are maintained at Rs. 128/kg ex-plant, plus GST.

Demand and Supply

• Demand is there in 316L HR generic sizes and also in 304 CR and HR (generic sizes, in both conditions), but supply is also matching the demand.
• Some demand is there in railway grade 409M in 2.5/3.0/4.0/5.0/6.0mm in HR condition.
• Also, demand can be seen in 201 grade imported No.8 PVC mirror finish in 0.5mm, 0.6mm, 0.7mm, 0.8mm, 1.0mm, 1.2mm and 1.5mm in CR condition.
• Slight demand is there in 201 2B, but N4 PVC finish certainly has great demand, as usual.
• Some demand is being observed in 304 CR 2B narrow-width also.
• SS 400 series doesn’t have much demand, as usual, except 409M grade HR quality ferritic Stainless Steel.

News

• China’s crude Stainless Steel production amounted to 26.6 million tons in the first nine months of this year, increasing by 12% compared to the same period a year ago. The apparent consumption was 22.25 million tons, a year-on-year hike of 12.3%. Meanwhile, China’s Stainless Steel net export volume was around 1.81 million tons, a year-on-year increase of 77.5%. The exported items gradually shift to high-tech products from common varieties. China’s economic performance has generally rebounded since this year, both supply and demand have continued to recover, and infrastructure construction investment has increased year on year, boosting Stainless Steel production and sales.
• Due to trade protection measures on Stainless Steel products in major regions such as the US and the European Union, PTJSI was not able to survive with a capacity utilization rate of only 15%. Hence, Jindal has decided to close its Indonesian plant, with immediate effect.
• Prices of most base metals increased on Tuesday as a softer U.S. dollar made greenback-priced commodities cheaper for holders of other currencies. Three-month copper on the London Metal Exchange rose 0.7% to $8,025.50/ton by 0642 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange advanced 0.9% to 66,520 yuan ($9,104.97) a ton.
• According to a report released by the World Bureau of Metal Statistics (WBMS), the global Nickel Ore market had a surplus of 10,400 tons in August this year. The global Nickel Ore production was 313,100 tons, and consumption was 302,700 tons. Meanwhile, global refined Nickel production was 276,800 tons, consumption was 302,700 tons, and there was a supply shortage of nearly 26,000 tons. In the first eight months of this year, global Nickel Ore production totaled around 2.28 million tons. Global refined Nickel output was 2.0187 million tons, consumption was 2.0327 million tons, and the supply shortage was 14,000 tons.

OFB’s Opinion

• SS 304 (both HR and CR) is expected to have some positivity this week but at medium levels.
• The SS 200 series and 400 series might be having a dull run this week, as usual.
• Stocking of 316L in HR condition is still expected to be a good proposition, in generic sizes, but at medium levels.