Significant Economic Advantages of Stainless Steel Scrap, Prices Remain Firm [SMM Analysis]

This week, the prices of 304 stainless steel scrap off-cuts in east China strengthened and rose to 9,450-9,550 yuan/mt, while in Foshan, the prices increased to 9,350-9,650 yuan/mt. Currently, by raw material calculation, the production cost of stainless steel entirely using stainless steel scrap is approximately 13,239.47 yuan/mt, while that using high-grade NPI is around 13,472.86 yuan/mt. This week, large stainless steel mills in south China did not update their procurement prices for stainless steel scrap.

This week, stainless steel finished product prices rose again, driven by the increase in futures, while high-grade NPI prices continued to strengthen, keeping stainless steel scrap prices firm. Although the smelting profits of stainless steel mills were not ideal, the gradual recovery of production and increased output, coupled with the rising prices of high-carbon ferrochrome and high-grade NPI, expanded the economic advantage of stainless steel scrap. However, the supply in the stainless steel scrap market remained tight, and its prices are expected to stay strong in the short term.