The overall stainless steel market remains weak and bottoming out, with the economic advantage of stainless steel scrap unable to reverse the decline. [SMM Stainless Steel Scrap Market Weekly Review]

This week, the price of 304 stainless steel scrap off-cuts in east China fell to 8,950-9,050 yuan/mt; in Foshan, the price of 304 stainless steel scrap off-cuts also declined to 8,750-9,050 yuan/mt. Currently, calculated by raw material, the production cost of stainless steel using entirely stainless steel scrap is approximately 12,647.37 yuan/mt, while the cost using entirely high-grade NPI is about 12,971.47 yuan/mt. This week, a steel mill in south China did not adjust its tax-included procurement price for 304 stainless steel scrap.

This week, influenced by the continued decline in SS futures prices, the price of stainless steel finished products dropped further, reaching relatively low levels for the year. Meanwhile, prices of high-grade NPI and high-carbon ferrochrome also continued to fall. The tender prices for high-grade NPI and high-carbon ferrochrome announced successively during the week by a major stainless steel mill were lower than those in the previous round. Additionally, affected by the year-end off-season, the market was filled with strong pessimistic sentiment. Steel mills still faced the issue of losses due to cost-price inversion, and expectations for production cuts remained recently, leading to low acceptance of high-priced raw materials. Although stainless steel scrap still holds a significant economic advantage compared to high-grade NPI, given the overall weak market performance, its price is expected to maintain a weak trend.