Stainless steel scrap prices continue to follow the decline in finished steel prices, with economic disadvantages gradually easing [SMM Weekly Review of Stainless Steel Scrap Market]

This week, prices of 304 stainless steel scrap off-cuts in east China pulled back to 9,600-9,700 yuan/mt, while prices of 304 stainless steel scrap off-cuts in Foshan also pulled back to 9,350-9,650 yuan/mt. Currently, when calculated by raw material, the production cost of stainless steel produced entirely from stainless steel scrap is approximately 13,417.11 yuan/mt, while the production cost of stainless steel produced entirely from high-grade NPI is approximately 13,413.27 yuan/mt. This week, a steel mill in south China did not update its purchase price for stainless steel scrap.

This week marks the first week after the Dragon Boat Festival. As the stainless steel market officially enters the traditional consumption off-season in June, finished product consumption remains sluggish, with prices continuing to decline, and the price of stainless steel scrap has also followed suit. Recently, news of production cuts at stainless steel mills has been circulating, and market expectations for demand for stainless steel scrap have weakened, leading to an increasingly cautious sentiment among stainless steel scrap traders. Despite the increase in high-grade NPI prices during the week, which has somewhat alleviated the economic disadvantage of stainless steel scrap, it still lacks cost advantages. Influenced by multiple factors such as weak stainless steel consumption, production cuts at steel mills, and insufficient economic efficiency, the stainless steel scrap market is expected to continue its weak performance in the short term.