This week, prices of 304 stainless steel scrap off-cuts in east China remained stable, with a quotation range of 10,400-10,500 yuan/mt; those of the same specification in Foshan also held steady, with a price range of 10,300-10,600 yuan/mt. From the perspective of raw material production costs, the cost of producing stainless steel using entirely stainless steel scrap as raw material is approximately 14,580.48 yuan/mt, while that using entirely high-grade NPI reaches 15,113.2 yuan/mt, with a considerable cost difference remaining between the two.
This week, stainless steel scrap prices remained stable overall. During the week, high-grade NPI, as an alternative raw material, was affected by expectations of production cuts at stainless steel mills during the off-season, leading to a continued price pullback. The overall raw material market atmosphere was weak, making it difficult to drive up stainless steel scrap. However, SS futures bottomed out and rebounded during the week, effectively repairing market pessimism. Meanwhile, spot prices of stainless steel finished products only edged down, highlighting the resilience of the spot market. Under the offsetting effects of multiple factors, stainless steel scrap prices maintained a firm trend. Overall, the market has now entered the traditional consumption off-season for stainless steel, with expectations for stainless steel mill production schedules continuing to be revised downward. Steel mill smelting margins have narrowed compared to the earlier period, coupled with still relatively strong macroeconomic uncertainty. As bearish risks gradually accumulate, it is expected that stainless steel scrap prices will face certain pullback risks in the subsequent period.
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