The decline in stainless steel scrap is less than that of high-grade NPI, and the economic advantage is lost again [SMM Weekly Review of Stainless Steel Scrap Market]

This week, the prices of 304 stainless steel scrap off-cuts in east China pulled back to 9,400-9,500 yuan/mt, while those in Foshan pulled back to 9,200-9,500 yuan/mt. Currently, calculating by raw material, the production cost of stainless steel produced entirely from stainless steel scrap is approximately 13,180.26 yuan/mt, while that produced entirely from high-grade NPI is approximately 13,138.37 yuan/mt. This week, a steel mill in south China did not update its procurement prices for stainless steel scrap.

This week, the prices of stainless steel finished products, high-grade NPI, and high-carbon ferrochrome fell simultaneously, and the price of stainless steel scrap also declined in tandem under the influence of bearish market expectations. Despite the continued tight supply in the stainless steel scrap market, the persistent price decline has led to a certain degree of reluctance to sell at lower prices among market participants. However, the weak transaction volume of stainless steel finished products, the cost-price inversion faced by stainless steel mills, and the heightened expectations for production cuts have resulted in low acceptance of high-priced raw materials. Additionally, as the price of high-grade NPI continues to decline, stainless steel scrap has once again lost its economic advantage. Although the gap is relatively small, it still imposes certain constraints on the price of stainless steel scrap. Considering all factors, against the backdrop of the current traditional consumption off-season for stainless steel, it is difficult for the stainless steel scrap market to form an independent trend, and it is expected to remain in the doldrums in the short term.