SHANGHAI, Apr 11 (SMM) - #304 stainless steel scrap quotes in east China dipped around 350 yuan/mt WoW last week, which was equivalent to high-grade NPI prices of around 1,040 yuan/mtu as of last Friday. The cost efficiency of stainless steel scrap dropped last week. The cash cost of cold-rolled stainless steel produced completely by stainless steel scrap was about 14,364 yuan/mt, and that produced completely by high-grade NPI was about 14,487 yuan/mt. The prices of stainless steel edged lower, putting a certain pressure on the raw material producers. Molten steel prices offered by Tsingshan stood at 10,000 yuan/mt following the price decline of high-grade NPI. Stainless steel mills purchased scrap cautiously. Last week, traded price of high-grade NPI fell to 1,030 yuan/mtu (tax included, delivery to factory). Some stainless steel mills have gained profits, and they may resume production in a small scale in April. However, the NPI supply stood high, and production lines in Indonesia maintained normal operation. SMM presumes that the NPI prices will drop on the falling prices of nickel ore shipped from the Philippines and Indonesia. The cost efficiency of stainless steel scrap over NPI will be maintained in the short term.
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