The economic disadvantage of stainless steel scrap persists, with linked finished steel prices rising first and then falling during the week [SMM Weekly Review of Stainless Steel Scrap Market]

This week, the price of 304 stainless steel scrap off-cuts in east China first rose and then fell, remaining generally stable at 9,750-9,850 yuan/mt. In Foshan, the price of 304 stainless steel scrap off-cuts rose slightly to 9,450-9,750 yuan/mt. Currently, based on raw material calculations, the production cost of stainless steel produced entirely from stainless steel scrap is approximately 13,594.74 yuan/mt, while the production cost of stainless steel produced entirely from high-grade NPI is approximately 13,229.1 yuan/mt. This week, a steel mill in south China did not adjust the tender price for stainless steel scrap procurement.

This week, high-grade NPI continued its strong upward trend, with quotes showing a continuous rise. However, influenced by the SS futures and low downstream acceptance, the price of finished stainless steel products fluctuated, first rising and then falling, but still rose slightly overall. The price of stainless steel scrap, linked to the price of finished stainless steel products, also followed a trend of first rising and then falling. Despite the continued tight supply of stainless steel scrap in the market and increased demand due to the rise in stainless steel production schedules in August, along with the approaching September-October peak season, market confidence has strengthened somewhat. However, compared to high-grade NPI, stainless steel scrap remains economically disadvantaged. Recently, there have been reports of maintenance and production cuts at some stainless steel mills in August, and it is expected that production schedules may decline.