The Decline in the Prices of Stainless Steel Scrap Slowed Down and the Cost Efficiency of High-grade NPI Recovered

SHANGHAI, Aug 15 (SMM) - Currently, the high-grade NPI prices, excluding pig iron, were 1,028 yuan/mtu, while the stainless steel scrap prices were 1,267 yuan/mtu. As a result, the cost advantages of high-grade NPI over stainless steel scrap recovered. Amid the expectation of production resumption of stainless steel, the transactions of NPI in early August were relatively active. However, due to the continuous decline of stainless steel prices, steel mills were unwilling to purchase the high-priced NPI. Therefore, the prices of NPI further declined. In addition, as the domestic NPI can be replaced by ferronickel and Indonesia NPI, the prices of domestic NPI were under great pressure. As the NPI prices continued to drop, the demand picked up, which put some pressure on the stainless steel scrap. To sum up, the cost efficiency of high-grade NPI last week has recovered compared with last week. The discount stood at 100 yuan/mtu against stainless steel scrap. The cash cost of cold-rolled stainless steel completely produced with stainless steel scrap was about 16,439 yuan/mt, while the cost with high-grade NPI stood at 16,505 yuan/mt. It is expected that the cost efficiency of high-grade NPI will remain in the future.