Stainless Steel Production Schedule Is Expected to Increase, Stainless Steel Scrap Becomes More Economical with Rising Prices [SMM Analysis]

This week, the price of 304 stainless steel scrap off-cuts in east China strengthened and rose to 9,650-9,750 yuan/mt, while in Foshan, the price increased to 9,500-9,800 yuan/mt. Currently, calculated by raw material, the production cost of stainless steel made entirely from stainless steel scrap is approximately 13,476.32 yuan/mt, while that made entirely from high-grade NPI is approximately 13,554.49 yuan/mt. This week, a steel mill in south China raised its tax-inclusive purchase price for 304 stainless steel scrap molten steel to 10,000 yuan/mt, up by 100 yuan/mt from the previous price.

This week, the stainless steel finished product market experienced weak transactions, leading to a significant increase in social inventory. Prices fluctuated and struggled to rise, while stainless steel mills faced losses. However, the stainless steel mills' production in March is expected to increase significantly, driving up the demand for raw materials. The stainless steel scrap market remained tight in supply, with prices staying firm and rising during the week. Additionally, stainless steel scrap remains more economical compared to high-grade NPI, while the price of high-grade NPI also remained strong. Therefore, the price of stainless steel scrap is expected to remain strong in the short term.