Stainless Steel Raw Material Support Shows Initial Strength, Ferrochrome and NPI Prices Rebound [SMM Analysis]

Published: Jan 17, 2025 17:00 (GMT+8)
[SMM Analysis: Stainless Steel Raw Material Support Strengthens Initially, Ferrochrome and NPI Prices Rebound] This week, stainless steel electronic trading fluctuated rangebound and trended upward, driving spot prices to continue rising. The weekly average price of private 304 cold-rolled stainless steel reached 13,030 yuan/mt this week, up by approximately 120 yuan/mt compared to last week.

This week, stainless steel futures fluctuated rangebound with an upward trend, driving spot prices to continue rising. The weekly average price of private 304 cold-rolled stainless steel reached 13,030 yuan/mt, up by approximately 120 yuan/mt WoW. As the Chinese New Year holiday approaches, although the prices of 304 cold-rolled finished products slightly rebounded, steel mill production in east and south China decreased, downstream market sentiment stabilized, and shipments remained limited, resulting in overall sluggish market transactions. The integrated nickel cost for 304 cold-rolled stainless steel was approximately 1,021.01 yuan/mtu, up by about 0.22% WoW. Ferrochrome prices stood at 7,300 yuan/mt, rising slightly by 33.33 yuan, while stainless steel scrap prices remained stable at around 9,300 yuan/mt. Raw material costs began to strengthen, with the daily cash cost of integrated raw materials at approximately 13,541 yuan/mt. Based on the stainless steel mill price of 13,050 yuan/mt, the cash cost incurred a loss of about 3.63%, while the full cost resulted in a loss of 7.85%. Stainless steel finished product prices are expected to remain stable or rise slightly next week.

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