India: Major stainless steel producer cuts coil prices as weak demand, lower nickel costs weigh on market
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- 304 HR and CR coil prices reduced by INR 5,000/t
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- BIS relaxation expected to support stainless steel imports
A leading Indian stainless steel producer has reduced domestic prices of hot-rolled (HR) and cold-rolled (CR) stainless steel coils, effective 6 July, marking its first price revision of the month. The move reflects weak downstream demand during the monsoon season, falling raw material costs, and easing supply concerns following the government’s extension of the Bureau of Indian Standards (BIS) certification exemption for select stainless steel products.
Under the latest revision, prices of 304/304L HR and CR coils have been reduced by INR 5,000/t, while 316/316L HR and CR coil prices have been cut by INR 7,000/t. Prices of 430-grade HR and CR coils have declined by INR 3,000/t, whereas 200-series stainless steel prices remain unchanged.
Market participants said buying activity has remained subdued, with distributors and downstream consumers limiting procurement to immediate requirements amid seasonally weak demand. In an effort to stimulate sales, mills are also offering additional discounts on bulk purchases over and above the revised list prices, reflecting intensifying competition for available orders.
The price correction also follows the government’s decision to extend the exemption from mandatory BIS certification for select stainless steel products until 31 March 2027. The relaxation is expected to improve import availability, with Chinese suppliers likely to accelerate shipments of eligible hot-rolled stainless steel products before the revised compliance deadline. Improved import prospects are expected to enhance domestic supply and intensify competition in the coming months.
On the raw material front, lower nickel prices have reduced cost support for stainless steel producers. Benchmark London Metal Exchange (LME) nickel prices declined by around 6% m-o-m in June, falling from nearly $19,000/t to around $16,400/t. The decline was driven by easing concerns over Indonesia’s nickel ore supply following expectations of additional RKAB approvals, alongside elevated global exchange inventories.
Market participants expect stainless steel prices to remain under pressure through the monsoon period unless downstream demand improves or raw material costs recover. Procurement is likely to remain largely need-based, while mills may continue using promotional discounts to support order volumes.
