Underperforming Peak Season With Weakening Market Expectations, Stainless Steel Scrap's Economic Advantage Widens but Price Remains Difficult to Rise [SMM Stainless Steel Scrap Market Weekly Review]

This week, the price of 304 stainless steel scrap off-cuts in east China remained stable at 9,700-9,800 yuan/mt; in Foshan, the price of 304 stainless steel scrap off-cuts dropped slightly to 9,400-9,700 yuan/mt. Currently, by raw material, the production cost of stainless steel using entirely stainless steel scrap is approximately 13,535.53 yuan/mt, while the cost using entirely high-grade NPI is about 13,663.84 yuan/mt. This week, a steel mill in south China has not adjusted its tender price for stainless steel scrap procurement.

This week, stainless steel finished product prices experienced fluctuations, rising first and then falling, but overall remained basically flat compared to last week. Although the price of high-grade NPI rose slightly, the momentum of the increase has significantly slowed. At the same time, the upward momentum of high-carbon ferrochrome also gradually weakened. During the week, stainless steel scrap prices remained relatively stable overall but showed a weakening downward trend. Due to the failure of the traditional peak season to meet sales expectations, stainless steel mills faced losses from cost-price inversions, leading to a noticeable cooling in procurement enthusiasm for raw materials, with a focus mainly on stable-price purchases. Although stainless steel scrap has gained some economic advantage compared to high-grade NPI, the market generally lacks bullish expectations.