The overall weakness in the stainless steel market dragged down stainless steel scrap prices, which further pulled back [SMM Stainless Steel Scrap Market Weekly Review]

This week, the price of 304 stainless steel scrap off-cuts in east China dropped slightly to 9,500-9,600 yuan/mt; in Foshan, the price of 304 stainless steel scrap off-cuts also weakened, reaching 9,250-9,550 yuan/mt. Currently, calculated by raw material, the production cost of stainless steel using entirely stainless steel scrap is approximately 13,298.68 yuan/mt, while using entirely high-grade NPI is about 13,510.06 yuan/mt. This week, a steel mill in south China did not adjust the tender price for stainless steel scrap procurement.

This week, driven by a significant pullback in SS futures, the price of stainless steel finished products fell accordingly, with high-grade NPI and high-carbon ferrochrome prices also declining, presenting an overall pessimistic and weak market trend. Stainless steel scrap struggled to form an independent trend, and its price pulled back slightly during the week. Currently, demand during the stainless steel peak season remains sluggish, and the sharp price drop has led steel mills into losses due to cost-price inversion. Coupled with relatively sufficient raw material inventory from earlier periods, purchase willingness for raw materials has noticeably weakened recently. Additionally, tax invoices for stainless steel scrap remain tight. Although the economic advantage of stainless steel scrap over high-grade NPI remains significant, this week's transaction volume for stainless steel scrap was not ideal. In the short term, stainless steel scrap prices are expected to remain in the doldrums.