The stainless steel market saw improved transactions, with stainless steel scrap prices remaining firm [SMM Weekly Review of Stainless Steel Scrap Market]

This week, the price of 304 stainless steel scrap off-cuts in east China pulled back, reaching 9,300-9,400 yuan/mt; in Foshan, the price of 304 stainless steel scrap off-cuts dropped slightly, reaching 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 13,061.84 yuan/mt, while the production cost of stainless steel produced entirely from high-grade NPI is approximately 13,034.16 yuan/mt. This week, a steel mill in south China did not update its procurement price for stainless steel scrap.

This week, the decline in stainless steel spot prices slowed down, the price of high-grade NPI continued to fall, while the price of stainless steel scrap remained stable supported by the firmness of stainless steel finished products. Currently, the supply of stainless steel scrap remains relatively tight, and stainless steel scrap traders still have a sentiment of refusing to budge on prices and holding back from selling. Despite the reduced demand for stainless steel scrap due to production cuts by stainless steel mills, given that the price of stainless steel scrap is already at a low level, there is significant resistance to further declines. Compared to high-grade NPI, the economic advantage of stainless steel scrap has once again disappeared, although the current price gap between the two is relatively small. Overall, driven by the rebound in stainless steel finished product prices at low levels and supported by the tight supply of stainless steel scrap, it is expected that stainless steel scrap prices will remain firm in the short term.