Economic Advantages of Stainless Steel Scrap Maintained, Market Transactions Expected to Improve [SMM Analysis]

This week, the price of 304 stainless steel scrap off-cuts in east China strengthened and rose to 93,50-94,50 yuan/mt; in Foshan, the price of 304 stainless steel scrap off-cuts increased to 93,50-96,50 yuan/mt. Currently, calculated by raw material, the production cost of stainless steel made entirely from stainless steel scrap is approximately 13,121.05 yuan/mt, while the production cost of stainless steel made entirely from high-grade NPI is approximately 13,370.82 yuan/mt. This week, large stainless steel mills in south China did not update their purchase prices for stainless steel scrap. Most participants in the stainless steel scrap market resumed work and production this week, leading to increased market activity. Last Friday, the molten steel price of stainless steel scrap at large stainless steel mills in south China rose, while the prices of raw materials such as high-grade NPI and high-carbon ferrochrome also strengthened, driving up stainless steel finished product prices. This has improved market expectations for stainless steel scrap. Currently, compared to high-grade NPI, stainless steel scrap still offers better cost-effectiveness, and its price is expected to remain strong in the short term.