Stainless Steel Scrap Remains Economically Disadvantaged, Prices Hold Steady Awaiting Peak Season [SMM Weekly Stainless Steel Scrap Market Review]

This week, the price of 304 stainless steel scrap off-cuts in east China first stabilized and then dropped slightly to 9,700-9,800 yuan/mt, while in Foshan, the price rose slightly to 9,450-9,750 yuan/mt. Currently, the production cost of stainless steel using 100% stainless steel scrap is approximately 13,535.53 yuan/mt, while the cost using 100% high-grade NPI is around 13,486.8 yuan/mt. A steel mill in south China did not adjust its tender price for stainless steel scrap procurement this week.

This week, driven by macro tailwinds, SS futures halted their decline and strengthened, lifting stainless steel finished product prices in tandem. The price of high-grade NPI climbed as steel mills raised tender prices amid expectations of increased stainless steel planned production in September. Although the price of high-grade NPI continued to rise, narrowing the economic disadvantage of stainless steel scrap, the latter remained less competitive. Throughout the week, downstream steel mills adopted a cautious approach to procuring stainless steel scrap, preventing its price from rising alongside other raw materials. Instead, prices remained stable overall, even pulling back slightly. However, as the September-October peak season approaches, anticipated increases in stainless steel production schedules may boost demand for stainless steel scrap, potentially curbing further price declines.