The supply of stainless steel scrap in the market is tight, and prices are running firm [SMM Weekly Review of Stainless Steel Scrap Market]

This week, the price of 304 stainless steel scrap off-cuts in east China remained stable, at 9,300-9,400 yuan/mt; in Foshan, the price of 304 stainless steel scrap off-cuts dropped slightly, to 9,150-9,450 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 13,005.59 yuan/mt. This week, a steel mill in south China did not update its procurement price for stainless steel scrap.

This week, the price of high-grade NPI continued its downward trend from the previous period. However, the spot price of stainless steel finished products rose slightly, driven by the stop falling and rebound in the futures market. The price of stainless steel scrap remained firm, with overall stability and minor local adjustments. Currently, the shortage of stainless steel scrap supply persists, and traders' reluctance to sell at lower prices remains strong. Driven by the rebound in stainless steel finished product prices, the market's expectation for stainless steel scrap prices to rise has intensified. With the pullback in high-grade NPI prices, the economic disadvantage of stainless steel scrap has become more pronounced. Overall, the current price of stainless steel finished products shows a strengthening trend, coupled with the tight supply of stainless steel scrap, and the price of stainless steel scrap remains firm.