OfBusiness Stainless Steel Daily Market Report | 2nd July 2024

Price

• LME’s Nickel opened down today by 0.17% at $17,420/ton, while Copper opened up by 0.42% at $9,670/ton.
• INR opened today against USD at 83.47/-.

Current retail prices:

• The current retail price for 304 CR wider 2B is approximately Rs. 184-187/kg, ex-Delhi. Narrower sizes are approximately Rs. 3-5/kg cheaper. Plus GST.
• SS 316L imported material is now retailing in the price range of Rs. 316-319/kg for HR wider. Indian material is Rs. 5-10/kg more expensive. For CR wider, rates are Rs. 10/kg higher than HR.
• SS 201 imported CR 2B (extra low thicknesses like 0.26mm) is retailed at Rs. 145-150/kg, ex-Delhi, plus GST.
• Domestic 201 (cheapest grade) is now retailing in the price range of Rs. 140-143/- base price (plus additional charges for thickness), plus GST.

Demand and Supply

• Demand is almost equivalent to supply in 304 & 316L (both CR & HR), in generic sizes.
• There is not much demand in the 400 series ferritic grades, except for 410S grade in thinner sizes.
• Good demand is observed in 201 grades, whether it’s for Holloware, Pipe & Tubes, or General Fabrication.
• Decent demand is also observed in narrow sizes of 304, for applications like pipes, tubes, or rerolling.

News

• The Turkish Ministry of Commerce issued a communiqué on June 28; domestic manufacturers Posco Assan TST applied to open an anti-dumping (AD) investigation into cold-rolled (CR) stainless flat steel imported from China and Indonesia, supported by Trinox Metal. The investigation period was from January 1, 2021, to December 31, 2023.
• In China’s Stainless Steel Market, futures surged past CNY14,000 last week amid spot market gains. Despite weak demand, July may see production cuts, hinting at short-term volatility. Steel mills reported limited arrivals and rising prices, with active trader promotions alleviating social inventory pressures. Yet, a cautious market stance prevails due to offseason demand challenges and ample supply. Nickel-iron cost support could drive volatile trends with anticipated July production cuts.
• Japanese Stainless Steel Imports in May saw Japan import 18,000 tons of cold-rolled stainless steel sheets, a 62.8% annual rise. Chinese imports soared 73.9% to 7,900 tons, the second highest ever. Taiwan contributed nearly 6,000 tons, while South Korea supplied about 3,800 tons, up 9.8%. Hot-rolled stainless steel plate imports also surged 47.9% to around 5,900 tons, reflecting robust regional demand dynamics.
• China’s Steel PMI for June 2024 fell to 44.7%, down 2% from May, ending two months of growth. July anticipates a slight demand rebound and increased steel production. Raw material prices may stabilize, supporting modest steel price hikes. Despite a traditional consumption downturn post-rainy season and policy boosts, hints at a cautiously optimistic second-half recovery, though real estate sector challenges linger.

OFB’s Opinion

• Both 304 & 316L are expected to have a medium run this week, owing to the decrease in raw material prices.
• The 400 series continues with its dull run due to the lack of demand in ferritic grades. The 200 series is still performing strongly due to the lack of imported products in the market.