Holiday Approaches, Futures Fluctuate, Stainless Steel Scrap Prices in the Doldrums [SMM Stainless Steel Scrap Market Weekly Review]

This week, the price of 304 stainless steel scrap off-cuts in east China held steady, quoted at 9,600-9,700 yuan/mt; the price of the same specification stainless steel scrap off-cuts in Foshan dropped back slightly, with a price range of 9,400-9,700 yuan/mt. From the raw material side production cost perspective, the current cost of producing stainless steel entirely using stainless steel scrap is approximately 13,417.11 yuan/mt, while the cost of production using entirely high-grade NPI is 14,379.8 yuan/mt.

This week, dragged down by the overall market environment, stainless steel scrap prices also trended in the doldrums. Approaching the Chinese New Year holiday, most traders at stainless steel scrap yards have entered a semi-holiday state, and the pre-holiday stockpiling demand seen earlier has largely concluded; coupled with the transmission of futures fluctuations this week, the pullback in finished stainless steel product prices, and the decline in the price of the substitute raw material high-grade NPI, stainless steel scrap prices moved lower in tandem. Wait-and-see sentiment continued to build, overall transactions for stainless steel scrap were sluggish, and industry participants generally maintained a cautious, watchful stance. Looking ahead, the significant pullback in the February stainless steel production schedule will directly suppress procurement demand for stainless steel scrap, but the significant economic advantage of stainless steel scrap relative to high-grade NPI remains quite pronounced, providing some support to prices; simultaneously, with the traditional peak consumption season of "Golden March, Silver April" approaching after the holiday, the market still holds bullish expectations for the future of stainless steel scrap.