Recent Trends in Stainless Steel Prices in India
Stainless steel is the most cost-effective steel, and its physical specifications make it perfect for multidimensional use. It is used in innumerable applications for its excellent corrosive-resistant functions. Especially its cleanability properties and seamless appearance are one of the reasons why people are widely choosing it for kitchenware. In India, using stainless steel utensils has long been a tradition. This is because stainless steel utensils are 100% safe for cooking. They can hold on to heat temperature without reacting with the food. Another good thing about stainless steel is that it is produced from 60% of recycled materials, which makes it highly sustainable, and hence, it does not have any bad impact on the environment.
Stainless steel has continued to be one of the top choices in many manufacturing companies in India. From paper manufacturers to the chemical industry, the industrial sector relies on stainless steel for various reasons. The price range of Stainless Steel In India depends on the diverse range of grades of stainless steel. Like, Grade 317 costs higher than Grade 304. Stainless steel of Grade 16 is considered the most expensive partly due to the addition of Nickel and Molybdenum. However, sometimes the price range tends to fluctuate if the price of certain components rises. It also depends on the marketing conditions and the product quality produced by the manufacturing company. CRS (Cold rolled flat) bar is a ductile material known for its tensile strength and a wider range of surface finishes. It is extensively used in automobiles, machinery, engineering, construction, furniture, domestic appliances, etc. Hence, it has the largest share in the global market. Other steel bars include- Cold bars & wire and Hot bars & wire rods, which have been largely utilized in the mechanical and electronics industry. Stainless steel has also seen growth in the engineering and construction sector. Especially the construction segment has been rapidly growing to this date.
Reasons for the increase in price of stainless steel
Although the price of Indian Steel was expected to see a decline of 10-15%, the latest analysis by ISSDA (The Indian Stainless Steel Development Association) shows that the Stainless Steel Price In India has increased by 26% since February 2021, and it will continue to grow steadily till 2023. The prices hike includes the cost of raw materials, the rising demand in the automobile industry, and the ongoing war between Ukraine and Russia. A decline in domestic demand has also contributed to the surge. People have been purchasing alternative products to stainless steel, so the export of steel in western countries has increased by 42%. Another reason for the growing price rate is the pandemic period. Due to restrictions, the steel industry has seen a major decline in steel consumption globally. During the initial surge in COVID-19 cases, The World Steel Organization reported that the demand for steel in the US and the Middle East had encountered a sudden decline. In 2021, the Government of India imposed strict guidelines prohibiting importing Chinese Stainless Steel flat products from China and Indonesia. The decision occurred in the Union Budget of 2021-22 after the immediate call for banning Chinese apps.
Furthermore, the impact of the Ukraine-Russia war has caused an unexpected surge in the price of raw materials, especially, iron ore and cooking coal. The other factors also include the sudden jump in the price of nickel. Around 0.5% of nickel is used in the production of utensils and 4% in the oil and gas industry.
The global surge in the major steel inputs has affected the steel industry to a certain extent. On account of the recent price situation of steel in India, ISSDA has urged the Ministry of Steel to seek certain steps to regulate the hike in the price of steel along with other commodities. The primal factor to the surge is not just the higher cost of materials. The pandemic and the war have equally caused the escalation. However, India remains the second largest consumer of Stainless Steel and has an advantageous position in exporting steel to the global market.