Stainless steel scrap follows the price increase of stainless steel finished products, losing its economic advantage and struggling to maintain strength [SMM Weekly Review of Stainless Steel Scrap Market]

Published: May 16, 2025 16:23

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This week, the price of 304 stainless steel scrap off-cuts in east China rose to 9,950-10,050 yuan/mt. In Foshan, the price of 304 stainless steel scrap off-cuts held steady at 9,650-9,950 yuan/mt. Currently, when calculated by raw material, the production cost of stainless steel produced entirely from stainless steel scrap is approximately 13,831.58 yuan/mt, while the production cost of stainless steel produced entirely from high-grade NPI is approximately 13,416.71 yuan/mt. This week, the tax-exclusive purchase price of 304 molten steel at a steel mill in south China was 9,330 yuan/mt, up 270 yuan/mt from the previous period, which is equivalent to a tax-inclusive price of approximately 1,006 yuan/mtu for high-grade NPI.

This week, despite the continued downward trend in the prices of high-grade NPI and high-carbon ferrochrome, the spot price of finished stainless steel products strengthened significantly, driven by favourable macro policies. The price of stainless steel scrap also followed suit and increased. Market confidence was boosted by the favourable policies. Additionally, the supply of stainless steel scrap in the market was tight, prompting some traders to choose to hold back their inventory and stand firm on quotes, further supporting the upward price trend. However, compared to high-grade NPI, the economic efficiency of stainless steel scrap has clearly become less competitive. As the impact of favourable macro policies gradually fades, the price of finished stainless steel products has begun to weaken. Coupled with the continuous decline in the prices of raw materials such as high-grade NPI and high-carbon ferrochrome, the price of stainless steel scrap is expected to struggle to maintain its strong performance under the dual pressures of cost disadvantages and weak demand.

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