With the Arrival of the Off-Season and News of Stainless Steel Production Cuts, Stainless Steel Scrap Prices Decline Further [SMM Stainless Steel Scrap Market Weekly Review]

This week, the price of 304 stainless steel scrap off-cuts in east China fell to 9,300-9,400 yuan/mt; in Foshan, the price of 304 stainless steel scrap off-cuts also weakened, reaching 9,050-9,350 yuan/mt. Currently, calculated by raw material, the production cost of stainless steel using entirely stainless steel scrap is approximately 13,061.84 yuan/mt, while using entirely high-grade NPI is about 13,337.94 yuan/mt. This week, a steel mill in south China has not adjusted its tender price for stainless steel scrap procurement.

This week, amid weak demand, the spot price of stainless steel finished products still struggled to show significant improvement. Both high-carbon ferrochrome and high-grade NPI prices were in the doldrums, and the price of stainless steel scrap followed suit, declining further. Recently, the issue of tight tax invoices continued to impact transactions of stainless steel scrap, lengthening the payment cycle and also affecting its price. Additionally, recent news indicated that several stainless steel mills will implement production cuts, which is expected to further reduce demand for stainless steel scrap. Although the economic advantage of stainless steel scrap remains significant compared to high-grade NPI, during the off-season for stainless steel demand, coupled with mill production cuts and weak prices for nickel and chrome raw materials, the price of stainless steel scrap is expected to remain in the doldrums.