304 Stainless Steel Cold Rolling Costs and Prices Rise Simultaneously, Losses Narrow but Challenges Persist [SMM Analysis]

Published: Mar 7, 2025 16:06

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[SMM Analysis: Costs and Prices of 304 Stainless Steel Cold-Rolled Coils Rise Simultaneously, Losses Narrow but Challenges Persist] This week (March 3-7, 2025), the cash cost of 304 stainless steel cold-rolled coils fluctuated between 13,899.56-14,007.17 yuan/mt, while the full cost ranged from 14,519.56-14,627.17 yuan/mt. Although market prices increased during the same period, profit values remained negative, with profit margins at the cash cost side ranging from -5.79% to -5.05% and at the full cost side from -9.79% to -9.07%. In terms of cost composition, nickel raw materials and high-carbon ferrochrome costs showed varying degrees of change. Overall, the costs of 304 stainless steel cold-rolled coils remained high during this period, with significant losses evident.

SMM reported on March 7 that

this week (March 3-7), the cash cost of 304/2B stainless steel cold-rolled coil gradually increased from 13,899 yuan/mt to 14,007 yuan/mt, while the full cost rose from 14,519 yuan/mt to 14,627 yuan/mt, showing an overall upward trend. This cost increase was mainly related to changes in the comprehensive procurement cost of nickel raw materials and the price of high-carbon ferrochrome. Specifically, the comprehensive procurement cost of nickel raw materials increased from 1,052 yuan on March 3 to 1,060 yuan on March 7; the price of high-carbon ferrochrome remained stable at 7,683 yuan on March 6 and 7, compared to 7,583 yuan previously.

Although the price of 304 stainless steel cold-rolled coil rose from 13,150 yuan/mt on March 3 to 13,300 yuan/mt on March 7, the profit values calculated based on both cash cost and full cost remained negative. The cash profit margin fluctuated between -5.79% and -5.05%, while the full profit margin ranged from -9.79% to -9.07%, clearly indicating that the current cost of 304 stainless steel cold-rolled products exceeds the selling price, leaving enterprises in a loss-making operation.

In terms of cost composition, fluctuations in nickel raw material prices significantly impacted the cost of 304 stainless steel cold-rolled products. Price changes in imported nickel plates, stainless steel scrap, and imported ferronickel directly led to variations in the comprehensive procurement cost of nickel raw materials. Meanwhile, the rise in high-carbon ferrochrome prices further drove up the cost of chrome raw materials, ultimately pushing up the cash cost of 304 steel billets.

This week, driven by cost factors such as nickel raw materials and high-carbon ferrochrome, the cost of 304 stainless steel cold-rolled products continued to rise. Although product prices increased, the growth in costs outpaced the price increase, resulting in negative profits and operational pressure for enterprises. Moving forward, stainless steel enterprises may optimize raw material procurement strategies and reasonably adjust production and sales plans to alleviate cost pressure.

Next week, the cost of 304 stainless steel is expected to remain high, with significant pressure to turn profits from negative to positive.

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Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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