Stainless Steel Scrap Prices Decreased Again by 150 Yuan/mt as Raw Material Support Further Weakens [SMM Analysis]

Driven by the rise in futures prices, although the spot market remained weak, prices stabilized by the weekend, halting the downward trend. The weekly average price of private 304 cold-rolled stainless steel was 12,910 yuan/mt, down approximately 96 yuan/mt WoW. This week, 304 cold-rolled finished product prices remained low and stable, with a slight inventory buildup at steel mills in east and south China. Downstream demand, except for the 400-series, continued to weaken, and destocking sentiment in the market was evident. The integrated nickel cost was approximately 1,019.11 yuan/mtu, down about 0.4% WoW. Ferrochrome prices dropped slightly by around 20 yuan, while stainless steel scrap prices were reduced again, with a decrease of 150 yuan/mt. Raw material support further weakened, and the integrated cash cost of raw materials was approximately 13,517 yuan/mt. Based on a settlement price of 12,900 yuan/mt for stainless steel mills, the cash cost incurred a loss of nearly 4.57%, while the full cost incurred a loss of 8.75%. Stainless steel finished product prices are expected to remain stable next week.

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