Stainless Steel Scrap Sector Faces Weak Supply and Demand last Week

SHANGHAI, Mar 15 (SMM) - The cost efficiency of stainless steel scrap was higher last week. The cash cost of cold-rolled stainless steel produced completely by stainless steel scrap was about 16,259.2 yuan/mt, and that of stainless steel produced completely by high-grade NPI was about 16,340.1 yuan/mt.  Last week, #304 stainless steel scrap prices dropped to 11,600 yuan/mt along with the falling futures prices, which was equivalent to high-grade NPI prices of around 1,325 yuan/mtu. The market demand weakened with the stainless steel mills finishing scrap purchases in March. At the same time, the scrap traders were less willing to ship amid the high costs. The stainless steel scrap sector thus faced weak supply and demand. The NPI prices fell by more than 70 yuan/mtu last week and will drop further amid the supply surplus and poor downstream demand. Therefore, SMM believes that the cost efficiency of stainless steel scrap will drop gradually.