India

India is in a solid economic position but is closely monitoring the USA where developments could have significant implications for global markets.

There is strong stainless steel-related demand across infrastructure, railways, defence and process industries in India where the stainless market’s worth is projected to reach US$ 40 billion by 2047. India aims to expand its stainless steel production capacity to 9.5 million tonnes by 2030 and to 19-20 million tonnes by 2047, according to the Indian Stainless Steel Development Association. The country’s per-capita consumption of stainless steel is forecast to rise from 2.5 kg per year at present to 9-9.5 kg by 2030, 12.5-12.7 kg by 2040 and 19-20 kg by 2047.

For the moment, however, the Indian rupee’s sharp depreciation against the US dollar over recent weeks has caused concern in the market, especially among mills worried about the rising cost of scrap imports. Furthermore, mills are facing a decline in new orders and prices for finished products are not picking up, pointing potentially to a slower recovery in demand or excess supply in some sectors.

LME volatility and increased imports from China are creating additional challenges for Indian mills, making it harder to predict market conditions and to compete effectively. While scrap demand is present, purchasing activity remains cautious. The influx of nickel pig iron is applying further downward pressure on scrap prices, creating additional issues for mills relying on scrap as a feedstock. Many mills are continuing to import semi-finished products as their pricing seems more viable. Adoption of blended scrap faces market resistance, although cost savings and environmental benefits could drive future acceptance.