Stainless steel raw material prices have risen significantly, boosting the market while cost pressure remains [SMM Analysis]

This week, stainless steel futures prices rose strongly, driving spot prices to climb simultaneously. The weekly average price of private 304 cold-rolled stainless steel was 13,200 yuan/mt, up about 50 yuan/mt WoW. After the holiday, most traders had not resumed operations, and market transactions remained relatively sluggish.

Cost side, the integrated nickel cost for 304 cold-rolled stainless steel was approximately 1,021.29 yuan/mtu, up slightly by 0.01% WoW. Ferrochrome prices rose to 7,400 yuan/mt, up 200 yuan/mt compared to pre-holiday levels, while stainless steel scrap prices remained stable at 9,300 yuan/mt. The significant increase in raw material prices provided strong support for stainless steel prices.

From the perspective of cost and profit, the integrated daily raw material cash cost was about 13,544.15 yuan/mt. Based on the settlement price of 13,225 yuan/mt for stainless steel mills, the cash cost loss was approximately 2.36%, while the full cost loss expanded to 6.63%. Overall, despite the significant boost from the raw material side, cost pressure remained substantial, and stainless steel finished product prices are expected to remain stable next week.

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