Chinese New Year Holiday Approaching, Stainless Steel Scrap Market Transactions Remain Sluggish [SMM Analysis]

This week, the price of 304 stainless steel scrap off-cuts in east China remained stable at 9,250-9,350 yuan/mt, while in Foshan, the price of 304 stainless steel scrap off-cuts also remained stable at 9,300-9,600 yuan/mt. Currently, by raw material calculation, the production cost of stainless steel entirely using stainless steel scrap is approximately 13,002.63 yuan/mt, while the production cost entirely using high-grade NPI is approximately 13,117.8 yuan/mt. This week, a steel mill in south China did not update its purchasing price for stainless steel scrap. As the Chinese New Year holiday approaches, many stainless steel scrap traders have started to take leave, leading to a significant decrease in market transactions this week. Although the prices of stainless steel finished products and high-grade NPI have shown strong performance, the overall price of stainless steel scrap has remained stable. In February, some stainless steel mills are expected to complete their annual maintenance, and production plans are expected to gradually resume, which may boost demand for stainless steel scrap. The supply of stainless steel scrap in the market remains tight, and with the current economic advantage of stainless steel scrap over high-grade NPI further expanding, the price of stainless steel scrap is expected to remain firm in the short term.