After nearly two months, a steel mill in South China once again announced the purchase price of stainless steel scrap, with the economic disadvantage still persisting [SMM Weekly Review of Stainless Steel Scrap Market]

This week, the prices of 304 stainless steel scrap off-cuts in east China rose to 9,750-9,850 yuan/mt, while those in Foshan increased to 9,400-9,700 yuan/mt. Currently, based on raw material calculations, the production cost of stainless steel made entirely from stainless steel scrap is approximately 13,594.74 yuan/mt, whereas the cost for stainless steel produced entirely from high-grade NPI is around 13,156.96 yuan/mt. This week, a steel mill in south China raised its tender price for stainless steel scrap procurement. The procurement price for 304 stainless steel melt, excluding tax, was set at 9,150 yuan/mt, an increase of 180 yuan/mt from the previous round. The procurement price for 316 stainless steel melt, excluding tax, was set at 18,025 yuan/mt, an increase of 635 yuan/mt from the previous round.
This week, influenced by the SS futures, the prices of finished stainless steel products continued to climb, with particularly active market quotes for high-grade NPI. By the end of August, the on-board price of high-grade NPI from Indonesia quoted by some traders had risen to 930-940 yuan/mtu, and the price of stainless steel scrap also increased simultaneously. After nearly two months, a large stainless steel mill in south China once again raised its procurement price for stainless steel scrap by 180 yuan/mt. Coupled with the expectation of an increase in stainless steel production schedules in August, the demand for stainless steel scrap is expected to rise, and traders' quotes have climbed accordingly. However, despite the simultaneous price increase of high-grade NPI and stainless steel scrap this week, the economic efficiency of stainless steel scrap still shows disadvantages. Currently, the boosting effect of macro tailwinds on the stainless steel market continues, with finished product prices maintaining an upward trend. The improvement in transactions has further enhanced steel mills' willingness to operate, thereby driving an increase in raw material demand. In the short term, the price of stainless steel scrap is expected to continue to remain strong, but due to its relative economic disadvantage compared to high-grade NPI, the increase may be somewhat constrained.