Stainless Steel Scrap Prices Stabilize as Economic Disadvantages Gradually Improve [SMM Stainless Steel Scrap Market Weekly Review]

This week, the price of 304 stainless steel scrap off-cuts in east China first rose then fell, remaining basically stable at 9,750-9,850 yuan/mt; the price of 304 stainless steel scrap off-cuts in Foshan dropped slightly to 9,400-9,700 yuan/mt. Currently, by raw material, the production cost of producing stainless steel entirely from stainless steel scrap is about 13,594.74 yuan/mt, while the production cost of producing stainless steel entirely from high-grade NPI is about 13,286.84 yuan/mt. This week, a steel mill in south China has not yet adjusted its tender price for purchasing stainless steel scrap.

This week, SS futures pulled back significantly, giving up the gains made within the month. The trading of finished stainless steel products was sluggish, and spot prices also declined. However, high-grade NPI continued its strong performance with quotations showing a continuous upward trend. Additionally, chromium prices also strengthened. Stainless steel scrap did not follow the decline in finished products this week and remained basically stable. Nevertheless, under the weakening market for finished stainless steel, downstream purchase willingness declined, and the trading of stainless steel scrap was sluggish. Moreover, although the economic disadvantage of using stainless steel scrap compared to high-grade NPI narrowed, it still remains at a disadvantage. It is expected that the price of stainless steel scrap may continue to be in the doldrums in the short term.