OfBusiness Stainless Steel Dailies | 7th July 2023

Price

• Nickel opened today at $21,200/ton (up from the lowest mean by 0.19%), while Copper opened today at $8,291/ton (up from the lowest mean by 0.36%).
• INR opened weaker against USD today at 82.70/-. Jindal Stainless Limited’s share opened at Rs 365/- (up by 3.21%).
• Rimjhim’s retail price for 304 CR 2B is currently running at Rs. 202/kg, compared to Jindal’s Rs. 216/kg (for wider) and Jindal’s Rs. 212/kg (for narrow). Jindal’s 304 HR N1 is at Rs. 203/kg basic against Rimjhim’s Rs. 192/kg, while 316L Jindal HR N1 is at Rs. 343/kg, and 316L Jindal CR 2B is at Rs. 355/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. 124/kg, FOR Delhi basis. Rimjhim RT N1 2B is Rs. 113/kg basic, FOR Delhi, while RT N1 NBT grade is Rs. 115/kg basic (FOR basis).
• SAIL Salem’s 409M HR price is Rs. 117/kg, and 409M CR price is Rs. 127/kg, while SS-LNA prices are maintained at Rs. 133/kg ex-plant, plus GST.

Demand and Supply

Demand is present in the following categories:

• 0.5mm/0.7mm/1.0mm/1.2mm/1.5mm/2.0mm/3.0mm 304 CR in 1250mm
• 4/5/6/8mm 304 HR in 1250mm & 1500mm
• 2.8/2.9/3/4/5/6mm 316L HR in 1250mm & 1500mm
• Special & 2B finishes 201 CR grade
• 2mm/3mm 430 CR 2B coils
• SS 400 series is still in status quo mode, with no significant improvement observed, except for 409M/CK-201/IRSM44-97
• Some demand is being observed in 304 CR 2B narrow-width as well

News

• LME Clear, the London Metal Exchange’s clearing house, has appointed David Warren as its new chair. Warren will take over on 20 July, succeeding Marco Strimer, who is stepping down as his term expires. Strimer will continue as director until the end of the year to assist with the transition. Warren, an exchange veteran, previously served as the chief financial officer of Nasdaq and interim chief executive of the London Stock Exchange Group.
• LME has implemented changes to daily price limits for certain base metal contracts. This Notice confirms the introduction of a new calibration methodology for the daily upper and lower price limits for base metals (the “Daily Price Limits”). A new methodology has been updated for the Daily Price Limits for outright Contracts in Aluminium and Copper on all Execution Venues, decreasing them from 15% to 12% with effect from 24 July 2023.
• The output of Stainless Steel in Russia from January to May 2023 was approximately 49,600 tons, representing a year-on-year increase of 27.4%. The Russian association stated that the demand for Stainless Steel products in Russia remained stable, supporting the production growth of domestic producers.
• The European Commission has decided to impose a definitive anti-dumping (AD) duty on imports of Stainless Steel refillable kegs originating in China for a period of five years, with duty rates ranging from 62.6% to 69.6%. The products subject to this duty are Stainless Steel refillable kegs with bodies approximately cylindrical in shape, with a wall thickness of 0.5 mm or more, and a capacity of 4.5 liters or more. This duty applies regardless of the type of finish, gauge, or Stainless Steel grade, whether or not with additional components, and whether or not painted or coated with other materials.
• Nickel supply has exceeded demand since 2022, and the surplus has further increased this year due to weak demand from the Stainless Steel sector in Asia and Europe, despite the resilient demand from the electric vehicle (EV) battery sector. The continued rise in Indonesian output and the launch of new Class 1 capacities in China and Indonesia have contributed to supply growth. The International Nickel Study Group and Russian producer Norilsk Nickel (Nornickel) now project a global surplus of over 200,000 tons in 2023.
• The surplus of high-quality nickel from new sources of supply is expected to put pressure on prices of the Stainless Steel ingredient in the coming years, narrowing the price differential with lower-grade Nickel Pig Iron (NPI). Prices of higher-grade Nickel, known as Class 1, have been supported by shortages and inventory draws from London Metal Exchange (LME) approved warehouses, primarily for use in electric vehicle batteries. The potential for sanctions on Russian material has also contributed to higher prices for Class 1 Nickel cathode.

OFB’s Opinion

• SS 304 is expected to have a slightly positive outlook this week.
• SS 200 series booking for imported & Jindal material is expected to remain slightly positive this week.
• Not much promise is expected from the SS 400 series this week.
• Stocking of 316L in HR condition & 304 CR narrow in CR condition is still expected to be a good proposition in generic sizes, from the perspective of a trader/stockist/distributor/service center.