Supply and Demand Drive Up Stainless Steel Scrap Prices, Economic Weakness Raises Concerns About Prices [SMM Analysis]

This week, the prices of 304 stainless steel scrap off-cuts in east China strengthened and rose to 10,200-10,300 yuan/mt, while in Foshan, the prices increased to 10,050-10,350 yuan/mt. Currently, by raw material calculation, the production cost of stainless steel entirely using stainless steel scrap is approximately 14,127.63 yuan/mt, while that using high-grade NPI is about 13,802.73 yuan/mt. This week, a steel mill in south China did not update its stainless steel scrap procurement prices.

This week, the prices of stainless steel finished products and high-grade NPI both showed an upward trend. As a result, stainless steel scrap prices also increased, with a cumulative rise of 200 yuan/mt. The significant growth in stainless steel production in March led to increased demand for stainless steel scrap, with market supply remaining tight. The market remains optimistic about the future trend of stainless steel scrap, and market sentiment is generally bullish. Nevertheless, the economic disadvantage of stainless steel scrap compared to high-grade NPI is gradually becoming apparent, which may pose resistance to further price increases. In the short term, stainless steel scrap prices are expected to maintain a cautiously strong trend.